International Fleet World December 2013 – January 2014

DECEMBER/JANUARY 2014

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

FAST LEARNER

The extraordinary story of Škoda and its latest fleet aspirations

Driver CPC How new training laws could benefit fleets

Telematics What the manufacturers offer and what’s new

Driven Ford Tourneo Connect BMW i3 // 4 Series

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DECEMBER/JANUARY 2014

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

INTERNATIONAL

FLEETW RLD internationalfleetworld.com

FAST LEARNER

The extraordinary story of Škoda and its latest fleet aspirations

Driver CPC How new training laws could benefit fleets

Telematics What the manufacturers offer and what’s new

Driven Ford Tourneo Connect BMW i3 // 4 Series

Managing Editor Ross Durkin ross@fleetworldgroup.co.uk Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Natalie Middleton natalie@fleetworldgroup.co.uk Motoring Editor Alex Grant alex@fleetworldgroup.co.uk Editorial Assistant Katie Beck katie@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executive Darren Brett darren@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk

Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web fleetworld.co.uk

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VIEWPOINT

CONTENTS

It is hard to ignore the arrival of a car like the BMW i3. While definitely not the first purpose-built electric car to make an appearance, it is the first from a premium manufacturer and also the first to move away from the mass market manufacturing methods that can be traced back to the work of Edward Budd in the early 20th century. Carbon fibre, used for building F1 cars because it is light and very strong, helps the i3 to keep weight down to that of a comparable conventionally powered car, despite carrying around a set of heavy batteries.

Reducing weight is going to be increasingly important as the pressure grows to cut fuel consumption further. Cars, like too many of their drivers, have put weight on in recent years and the best way to reduce it is to use more lightweight materials like carbon fibre. The i3 will have the same range issues as other electric vehicles but will be available with a range-extending petrol engine designed specifically for the purpose, as an option.

Demand for electric cars is not going to change significantly with the arrival of one model, but the i3 signals that it is possible to make cars in number without using pressed steel as the core building technique and at a competitive price. The times they are a changing.

A Happy Christmas from all at International Fleet World. We all look forward to a better 2014.

04 News Analysis 10 EV News Analysis 12 Strategy European residual value confidence.

13 BMW i3 Born electric... how the i3 rewrites the electric car rulebook.

18 Telematics Mobile data for telematics marches on.

22 Telematics Integrating technology into OE.

26 Risk management Learning from the professionals.

29 2014 Fleet Calendar 30 Interview Des Evans, UK CEO, MAN.

32 MPG Marathon 2013 Europe’s premier economy driving event.

34 FOCUS ON...

SWEDEN.

37 2013/14 Fleet Calendar 38 PROFILE ŠKODA.

45 Launch Report Ford Tourneo Connect / BMW i3 / BMW 4 Series / Volvo FL.

50 Fleet In Figures

13 18 30 48

John Kendall Editor

To subscribe to Fleet World visit: fleetworldsubscriptions.co.uk

IFW December/January 2014

03

news analysis

A class apart...

New C-Class and V-Class models from Mercedes promise increased comfort and technology, as Dan Gilkes discovers.

The next Mercedes-Benz C-Class, expected in summer 2014, will use a stronger, lighter steel/aluminium hybrid chassis and body. The technology uses up to 48% aluminium, up from 9%, resulting in a 100kg weight saving. Mercedes claims a 20% reduction in fuel consumption, without any loss of power.

The C-Class will feature a full aluminium roof and inner wings. To add rigidity, 12% of the chassis has been constructed of high-strength, hot-formed steel components, providing a robust passenger cell for improved occupant protection, plus solid mounting points for suspension components, reducing noise and vibration within the car.

Four-link front suspension with mainly aluminium components replaces the previous MacPherson-type layout.

The suspension is fully decoupled from the spring strut, providing improved steering response with less corruption from the suspension. Electronic power steering makes a first appearance on the C-Class.

Three levels of steel suspension will be available, ranging from comfort to sport, riding 15mm lower. Mercedes will offer Airmatic air suspension for the first time on the front axle of a C-Class. Airmatic allows the driver to choose between Comfort, ECO, Sport and Sport Plus settings.

The five-link rear suspension has been updated and air suspension remains standard on the rear axle of estate models.

The interior will be totally new, with quality, technology and refinement taking a step up. The car has a single winglike dash and a wide sweeping central console, reminiscent of the latest S-Class. All get a central glass screen, 7� on

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entry-level models or 8.4� with COMAND Online. Five round air vents with horizontal bars complete the look.

The functions of the monitor answer to a touchpad and rotary controller in the centre console, the controller’s glass top allowing single and multi-touch gestures and handwriting recognition. A high-resolution head-up display is also an option.

All models come with Attention Assist and Collision Prevention Assist Plus, with autonomous braking. A vast array of optional safety and driver assistance systems are available, including Pre-Safe Plus, which tightens seat belts and applies the brakes if sensing a rear-end collision, and Active Parking Assist.

The C-Class can even tell from GPS location data when it is entering a tunnel, closing the air recirculation flap to prevent fumes entering the cabin.

Mercedes will relaunch the V-Class in March 2014, as a luxury people carrier. The V-Class follows the C-Class design philosophy, with a wing-shaped dash with upper and lower sections and four circular air vents.

The car has the same glass monitor and touchpad/rotary controller to control telematic and audio functions. Four interior trim and dash materials will be offered.

At the rear, customers can load smaller items by simply lifting the rear window, independently of the electric rear tailgate. Two wheelbases provide individual seating for six to nine occupants.

for the latest news, visit internationalfleetworld.com

KPN & Masternaut team up for fleet and insurance telematics services Masternaut and Dutch telecoms and ICT service provider KPN are to jointly develop and market telematics-enabled fleet management and insurance products under a new partnership that targets both new and existing telematics users.

Under the deal, KPN’s M2M (Machine-to-Machine) teams will distribute Masternaut products under the KPN brand.

Masternaut will provide software services, applications, platforms and technical support, while KPN will contribute with its commercial network, including pre- and post-sales support, consultancy and customer care.

The agreement covers products such as driver behaviour management and vehicle telematics and includes enhanced vehicle expenses management modules and live vehicle tracking, as well as products and services that reduce corporate and consumer risk in the insurance market.

Nissan’s Carlos Ghosn sounds warning over UK EU referendum Nissan has spoken out about the UK’s possible plans for an EU referendum, warning that it could end investment if Britain quits the EU. The warning from the carmaker’s chief executive, Carlos Ghosn, follows a promise by British Prime Minister David Cameron that a referendum will be held on EU members if the Conservative party wins the next general election.

Mr Ghosn said: ”If anything has to change we would need to reconsider our strategy and our investments for the future.”

But he added that he considered such an exit unlikely.

Lexus CT 200h breaks cover Lexus has provided the first official images of the facelifted CT 200h prior to its world premiere at the Guangzhou Motor Show.

The main exterior design changes take the form of the addition of the brand’s trademark ‘spindle’ grille as well as revisions to the front and rear bumpers and

the use of new design alloys. No technical details have been revealed yet.

The current model was first introduced in 2010 as the world’s first full hybrid luxury compact car.

The new CT 200h made its debut on 21 November at the brand’s stand at the Guangzhou Motor Show.

IFW December/January 2014

05

news analysis

Renault joins Nissan-Mitsubishi tie-up

European fleet take-up of telematics to double by 2017

The partnership between Nissan and Mitsubishi Motors is to be expanded to include Renault in a move to explore new projects covering shared products including electric vehicles as well as two new sedans.

The existing NMKV joint venture between Nissan and Mitsubishi was launched in 2011. Under the new plans, the JV will be extended to co-develop a new small car including a specific electric version based on the jointlydeveloped ‘Kei car’ platform that has already been used for the Nissan Dayz and Mitsubishi eK wagon, which went on sale in Japan this year.

The collaboration will also see the carmakers share technologies and product assets related to electric vehicles and latest-generation platforms.

However, the first fruits of the extended partnership are expected to take the form of two new sedan models launched under the Mitsubishi brand and based on vehicles from the Renault line-up.

The first sedan would compete in the full-size D-segment markets of the United States and Canada and be manufactured at the Renault-Samsung plant in Busan South Korea. The second sedan model would compete in the global C-segment.

European commercial fleets’ take-up of telematics systems is to double by 2017 to reach a total of 6.40 million units.

That’s the finding of a new research report from the analyst firm Berg Insight, which says that take-up will grow at a compound annual growth rate (CAGR) of 16.0% over the next four years.

The firm adds that Masternaut is ranked as the largest player overall in terms of installed base, with close to 287,000 units deployed today. TomTom Business Solutions was the fastest growing vendor also in the past year and has now surpassed 275,000 subscribers in this region.

Digicore and Trimble have also joined the exclusive group of fleet management providers in Europe, having more than 100,000 active devices in the field. Meanwhile Transics is number one in the heavy trucks segment with an estimated 80,000 active units installed.

A second wave of M&A activities started in 2013 after 18 months of lull. ”Six major mergers and acquisitions have so far taken place this year among the vendors of fleet management systems in Europe,” said Johan Fagerberg, senior analyst at Berg Insight.

BMW unveils new 2 Series model line BMW has released the first images of the forthcoming 2 Series Coupe, introducing a new model line which will replace the outgoing 1 Series Coupe next year.

Set to debut at the North American International Auto Show in January, the 2 Series will be available globally from March 2014 and shares its platform with the 1 Series hatchback, but with a wider track front and rear and no exterior panels shared between the two models.

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Launch engines include the familiar 184hp 2.0-litre diesel and a choice of 220i and M235i petrol variants with 184hp and 326hp respectively. A six-cylinder 225d and entry-level 218d diesel engines will follow shortly afterwards, the latter emitting 114g/km CO2.

Economy-boosting measures include Air Curtains to divert air around wheel arches, a coasting function for automatic gearboxes and ECO PRO variable driving modes.

for the latest news, visit internationalfleetworld.com

Kia to launch hydrogen fuel cell vehicle in 2015 Kia’s first hydrogen fuel cell electric vehicle will begin production in 2015, starting with a small run of around 1,000 units in line with the present lack of infrastructure.

The carmaker is developing a portfolio of electrically powered vehicles, including hybrid, plug-in hybrid and battery-electric models, but sees hydrogen fuel cells as its eventual goal, with mass production expected to begin in 2020 once the refuelling infrastructure has expanded.

For now, though, Kia is preparing to launch its first electric vehicle sold outside Korea. The Soul EV will go on sale globally in the second half of 2014 and a version is being developed for European customers.

FleetCor acquires UK’s epyx in move to expand into fleet maintenance Global fuelcard and workforce payment specialist FleetCor Technologies Inc. has announced its acquisition of epyx in a move to expand into the fleet maintenance sector.

Epyx specialises in IT solutions for the automotive sector, with its best-known products being the 1link e-commerce platforms, which cover functions including vehicle procurement, maintenance, hire, disposals and relicensing.

The acquisition follows FleetCor’s purchase of the AllStar fuel card from Arval at the end of 2011, which was undertaken to provide FleetCor with a strong presence in the UK market. ”We’ve been looking for ideas to extend beyond fleet fuelling, to fleet maintenance, and epyx has done that. They’ve developed a highly specialised system that helps their fleet customers better manage their overall maintenance life cycle and costs.

We like the potential to bring this solution to a lot more clients,” said Ron Clarke, chairman and chief executive officer, FleetCor Technologies Inc.

LeasePlan to expand into Canada under Foss National Leasing tie-up LeasePlan Corporation NV has announced its North American expansion into Canada from January 2014 through a newly formed subsidiary, LeasePlan Canada.

The new company will be operated by Canadian fleet management firm Foss National Leasing Ltd under a new licensing agreement, with Jeff Hartley to become its president.

The new company joins LeasePlan’s existing North American businesses of LeasePlan USA and LeasePlan Mexico.

Karen Foss, CEO of Foss National Leasing, said: ”LeasePlan has a proven track record of expanding into new markets and growing to market-leading positions. LeasePlan Canada will provide innovative products, value for money and superior service to meet the needs of multinational clients, especially those with a presence across North America.”

in brief...

Saudi Arabia’s Mobily ventures into telematics Saudi Arabia telecoms firm Etihad Etisalat – known as ‘Mobily’ – has teamed up with Advanced Electronics Company (AEC) to launch a telematics service for fleets.

Dubbed Mobily FMS (Fleet Management Service), the service offers near real-time vehicle tracking, vehicle management, detailed reporting, remote diagnostics and configurations, with fleets able to use Mobily as a one-stop shop through a dedicated Business Sales Team.

Europcar expands into Canada under new deal Europcar and Discount Car and Truck Rentals Ltd, one of the largest car rental companies in Canada, have announced a new partnership that will expand Europcar’s reach in North America.

Effective immediately, Discount Car and Truck Rentals Ltd will serve Europcar’s customers in Canada while Europcar will serve Discount’s customers in the rest of the world.

ARI completes HPI Fleet & Mobility takeover HPI Fleet & Mobility is to operate as ARI now, following the completion of its takeover by ARI. The acquisition forms part of ARI’s continued growth in Europe and follows the company’s recent expansion into the UK and Germany.

JATO appoints president of Greater China operations Keith Lomason has been appointed as president of Greater China Operations at JATO Dynamics.

Mr Lomason brings with him 28 years of experience within the automotive industry, gained within manufacturing, business development and consultancy roles.

IFW December/January 2014

07

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EV news analysis

Lack of knowledge and perceived high costs top fleet concerns over EVs, says Alphabet A lack of knowledge and perceived high costs are the main barriers to electric vehicle adoption among fleets, according to a consultation undertaken by Alphabet, based on its customers’ opinions.

The insight sessions, which culminated in a customer forum, highlighted a number of key questions around the introduction of EVs, with lack of understanding topping the lists. Perceived cost was listed as the main barrier to reaching green targets, quoted by 52% of fleet managers studied in Alphabet’s latest Fleet Management Report.

To help address these concerns, the company recently launched its EVfocused consultancy service, AlphaElectric, across key European markets.

Believed to be an industry first, it will provide a four-step approach to integrating the technology on fleets, including cars and commercial vehicles, such as charging solutions, access to other vehicles, training and guidance on which models best suit a customer’s needs.

Alphabet’s mobility solutions manager, Kit Wisdom, said: ”For electric vehicles and other low carbon transport methods to achieve mainstream adoption, it is important for both the financial and suitability arguments to stack

up. As such, it is important that fleet managers are able to get hold of all of the facts to make informed decisions about if and how electric vehicles will fit into their wider business mobility planning.” ”We have launched AlphaElectric to ensure that fleet managers have access to strategic consultancy and innovative mobility solutions that are independent of any one manufacturer and tailored to the needs of the business sector, rather than consumer retail market.”

Tesla CEO Elon Musk to advise UK government on electric vehicles The UK government has appointed Tesla Motors chief executive and cofounder, Elon Musk (pictured) as an advisor in electric vehicle policy, as part of ongoing plans to increase uptake among consumers.

Announcing his appointment, Deputy Prime Minister Nick Clegg said the Coalition Government was seeking experts from the ultra-low carbon industry to maximise the return on a confirmed £900m investment in the sector by 2020. ”The job now is making sure that we get the most out

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of every penny,” he said. ”So today I am launching a call for evidence from key players in the industry to find out how we kick start demand and make the UK the number one European destination for investment in ultra-low emissions vehicles.”

Clegg said the UK was already experiencing a renaissance in the sector, with Toyota and Nissan producing hybrid and electric models here. Additional advice would be aimed at securing the country’s position as a global leader in ultra-low emission technologies, with benefits for the environment and economy as a result.

He explained: ”[Musk] brings unmatched expertise to the table. Among other issues, he’ll consider how we can boost investment, massively increase the take up of electric vehicles across the country and promote the benefits of ultra-low emission vehicles more widely to drivers.”

for the latest news, visit evfleetworld.com

Quebec outlines €370m electromobility investment The Quebec government has announced a $516m (€370m) investment in electromobility for the next three years, including rebates for buyers and plans to push the technology within its own fleets.

Aiming for 12,500 additional electric vehicles on the province’s roads by 2017, the plans include extending the $8,000 (€5,700) rebate against battery-electric models and $500 (€360) rebate against hybrids until the end of 2016, supported by 5,000 new charging points across the entire province.

By March 31 2017, the government aims to have 2,000 electric vehicles on its own fleet, including all cars belonging to officials. It will also have installed 1,000 charging points near government buildings, which will be available to state employees and others.

Montreal will gain a fleet of green taxis and electric trolleybuses, and the investment will also fund a $35m (€25m) new Institute of Electrical Transport to promote research and development of new technologies in the region.

Eight-state initiative sets 3.3m EV target for 2025 Eight of the United States of America have joined forces to promote electric, plug-in hybrid and hydrogen fuel cell vehicles, targeting a total of 3.3 million combined sales by 2025.

Signed by the governors of California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island and Vermont – accounting for a quarter of all US car sales – the co-operative agreement has entered a six-month planning phase on how the states can work together to jointly build a market for electrically powered vehicles – including cars, trucks and buses.

This will include harmonised building codes and signage for charging points, incentives and home charging packages for owners and the adoption of electric and hydrogen-powered vehicles on their own fleets. By helping demand to rise, it is hoped that it will lead to lower up-front costs for new technology and a wider range of vehicles being offered by manufacturers.

Lexus previews IS-based hybrid coupe Lexus has unveiled its first hybrid coupe, the RC 300h, at the Tokyo Motor Show this month, hinting that the model is nearly production ready.

Shorter and wider than the new IS saloon, the RC could mark a re-entry into the compact executive coupe segment, competing against the Audi A5 Coupe and BMW 4 Series. It shares its interior and four-cylinder hybrid drivetrain, and 3.5-litre V6 petrol engine, with the IS and should offer CO2 emissions under 110g/km.

in brief...

EU-funded project turns body panels into batteries An EU-funded research project has developed a new energy storage system which would allow an electric vehicle’s structure and body panels to function as a battery, housing cells between layers of carbon fibre. Project partner Volvo said the breakthrough could reduce the weight of an EV by 15%, while cutting the cost and environmental impact of manufacturing.

Singapore taxi firm orders 600 Toyota Prius hybrids Singapore public transport giant SMRT Corporation is to add 600 Toyota Prius taxis to its fleet, set to be the largest fleet of hybrids in the country once deployment is complete next year. Representing a fifth of SMRT’s fleet, customers will be able to specify a hybrid taxi when they book online or via the company’s app.

Renault-Nissan and Mitsubishi to share electric vehicle technology and platforms The Renault-Nissan Alliance and Mitsubishi Motors Corporation have extended their co-operative relationship, announcing a city car (Kei Car) for the Japanese market which will be sold globally with an electric powertrain.

C and D-segment platforms will also be shared, the manufacturers have said.

Ford battery lab provides production stepping stone Ford has opened a $8m (€6m) new battery lab at the University of Michigan, with the support of suppliers and governments, saying the facility will help speed up the pace of electric vehicle development. The manufacturer said it would allow new technology to be tested on a small scale before being put into production, and that research would cover all forms of battery, rather than just lithium-ion units.

IFW December/January 2014

11

fleet strategy

UK fleet sector bucks the trend The UK fleet sector is bucking a negative trend across Europe with its positive outlook for the future used vehicle market, reckons Experteye.

GERMANY: In the last quarter German SMR budgets fell by the highest margin of all nations surveyed, with a -4% drop. This follows a year when they came down by -3.9%. After a year that saw forecasted residual values devalue by -1.5%, they only fell by -0.3% this quarter. Rental rates reduced by -1.3% for the year, but rose by +0.4% in the last three months.

ITALY: Italian SMR budgets have fallen by the greatest margin during the last year, with a -6.4% drop. This has steadied in the latest quarter with a -0.7% fall. Forecasted RVs have fallen for both the year (-2%) and the quarter (-1.6%). Rental rates have hardly moved during the year (-0.1%) but have fallen by -1.4% since August 2013.

PORTUGAL: Over the past year, Portugal has reported a -8.6% fall in forecasted RVs and a +9.3% hike in SMR budgets. This has resulted in a -4.8% reduction in average lease rentals, and places Portugal as seeing the largest annual movement in its budgets and pricing. The last quarter is less dramatic, with a -2.8% fall in RVs (yet still the largest reduction of all nations surveyed), a -2.6% reduction in SMR budgets and a -0.4% drop in rentals.

SPAIN: In the three months from August 2013, Spain has been very settled with no change to forecasted residual values or average rental rates, and only a -0.1% shift in SMR budgets. This follows a year when budgeted SMR costs fell by -5.1%, forecasted RVS changed by -0.8% and rentals dropped by -1.5%.

UK: The UK is the only nation surveyed to have seen a rise in its forecasted residual values with a +4.6% improvement for the year, and +0.3% for the quarter. SMR budgets have been relatively static (+0.2% for the year and -0.1% for the quarter), yet UK fleet customers have suffered a +3.7% increase in rental rates, albeit there has been no change since August 2013.

UK forecasted residual values have risen by +4.6% in the past year, compared to falling values across other European nations, reflecting a growing economy and improving optimism.

The figures from the Experteye European Leasing index show French residual values (RVs) falling by -0.2% during the last twelve months, with Spain reducing by -0.8%, Germany -1.5%, Italy -2% and Portugal by -8.6%.

In the latest quarter, from August 2013, the variations are less dramatic. Yet the UK still remains the only nation to have reported an increase to its forecasted RVs (+0.3%). Spain remains unchanged in the last three months, France has seen a -0.1% fall, Germany -0.3%, Italy -1.6% and Portugal -2.8%.

The Experteye survey tracks forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies.

For the 12-month period, SMR variances are equally diverse.

At one extreme Portugal is reporting a +9.3% increase, with Italy falling by -6.4% at the other. Yet despite buoyant RVs and almost unaltered SMRs, it is UK fleet operators that have suffered the greatest price rise to average rental costs, going up by +3.7% since November 2012.

Market summaries – 3 and 12 months to October 2013

FRANCE: Servicing, maintenance and repair budgets stand out in France with a +7.3% hike since a year ago. In the recent quarter this has settled to a far smaller +0.8% increase, with other budgets and costs remaining flat. RV forecasts only moved by -0.2% for the year and -0.1% for the quarter. Average rentals rose by +0.5% from November 2012 and +0.1% from August 2013.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values

Forecast Service, Maintenance and Repair Costs

Current Rental Rates

3-month change 12-month change 3-month change 12-month change 3-month change 12-month change France Germany Italy Portugal Spain UK

-0.1% -0.3% -1.6% -2.8% +0.0% +0.3%

-0.2% -1.5% -2.0% -8.6% -0.8% +4.6%

Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km.

• Twelve-month comparisons show change since November 2012.

• Three-month comparisons show change since August 2013.

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+0.8% -4.0% -0.7% -2.6% -0.1% -0.1%

+7.3% -3.9% -6.4% +9.3% -5.1% +0.2%

+0.1% +0.4% -1.4% -0.4% +0.0% +0.0%

+0.5% -1.3% -0.1% -4.8% -1.5% +3.7%

• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago.

• RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.

BMW i

The Ultimate The Ultimate Driving Machine Driving Machine

BECOME ELECTRIC. THE NEW BMW i3.

Produced in association with

INTERNATIONAL

FLEETW RLD

Become Electric with BMW i.

Christel Reynaerts, Head of International Corporate Sales at BMW explains how the carmaker’s new BMW i brand is a perfect fit for the modern fleet.

What role will BMW i have in BMW’s international corporate sales strategy and how will you promote i3 to corporate customers?

First of all BMW i represents a perfect completion of BMW’s current product portfolio and our brand values. The consistently sustainable approach along the whole value chain of our BMW i products (from development over the production – for example using 100% renewable energies – a zero emission product, a second life concept for the batteries and a degree of 95% recycling potential after the lifecycle) is a strong argument especially in times of CO2-regulation and lack of resources. But another strong argument is BMW i3 itself, which combines electric driving with a lot of driving pleasure in a fascinating manner.

Furthermore BMW i enhances our established EfficientDynamics Strategy, which applies especially for fleet and corporate customers. We are sure that the best opportunity to get attracted, is to test drive the BMW i3.

What kind of fleet customers will you target with the i3?

We are convinced that BMW i is an interesting offer for all kind of fleet and corporate customers. In the initial phase probably a little more for sustainable orientated companies.

But: BMW i stands not only for electric or emission free vehicles – with BMW i we offer emobility! This means a convenient opportunity to combine different forms of mobility – for example using an i3 and public transport for one route. For this purpose our cars are connected and together with various ConnectedMobility Services e.g. via Smart Phone Apps or through the i3 functionalities we enable an enormous flexibility. Via this approach we offer a holistic scope regarding mobility to our fleet and corporate customers – also beyond personally allocated cars or pool car solutions.

How will your corporate sales strategy differ from that for BMW petrol and diesel models?

BMW i represents already today an inherent part of our offer towards fleet and corporate customers. We do not aim to change every corporate car into an i3. Accordingly a distinction won’t be very helpful. The predominant use of a vehicle plays the decisive role, if there is potential to offer an electric vehicle or not. If the BMW i3 doesn’t fit to the mobility profile of a driver, the usage pattern or the requirements of a company we will always recommend one of our efficient diesel or petrol vehicles to the corporate customer. Of course we support our partners to analyse their fleets regarding those profiles and facilitate the evaluation of respective opportunities.

What ideas do you have for vehicle re-charging for international corporate customers, including charging points and payment methods?

In terms of re-charging or charging infrastructure for fleet and corporate customers our solutions are highly depending on the customer’s needs. For example the number of electric cars which should be managed and of course the number of facilities of a company. Another aspect is the usage of those cars. Talking about car sharing or pool car solutions which are probably higher frequented over a day we recommend to install a fast charging device – this way it is possible to recharge an i3 up to 80% within half an hour, ready for the next user.

Regarding residential solutions we are well prepared with our “BMW Wallbox” – part BMW’s 360°Electric Portfolio. For public or semi-public charging we ensure access and the possibility of convenient payment in the same way via our “ChargeNow Card” – also part of our 360°Electric Portfolio (depending on country specific option). Talking about scalable and/or intelligent charging infrastructure in a business environment we are globally working together with specialised and professional partners who develop a tailored solution on site together with our fleet and corporate customers.

THE ELECTRIC ADVANTAGE. For businesses: The BMW i3 is designed to meet the challenges facing modern fleets, which are increasingly under pressure from rising fuel costs, evolving taxation and changing regulation, but also from driver expectations. Adopting the i3 on your fleet not only shows you’re taking active steps to reduce carbon emissions and environmental impact, but with tax advantages in many countries and low charging costs, compared with the price of petrol or diesel fuel, it can help to minimise your running costs too.

For drivers: Desirable and great to drive, (see page 47) the BMW i3 has the familiar emotional appeal that comes with the BMW badge. Yet it does so at minimal cost. Both battery-electric and range extender versions offer discounts and exemptions from city congestion charging and offer a number of vehicle and driver taxation advantages, depending on country. Grant funding is available in some countries towards the cost of purchasing the car and installing charging facilities at home.

BMW i3

BMW i3 (Range Extender)

Max power

170hp

170hp

Max torque

250Nm

250Nm

Electrical range

190km

340km

CO2 emissions

0g/km

13g/km

Fuel consumption

0

0.60lit/100km

BORN ELECTRIC. THE launch of the BMW i3 marks a new chapter in electromobility. This is the first premium electric vehicle to reach the market, designed from its inception to run on electricity and to maximise the potential of its revolutionary power source.

Sustainability is woven into every material chosen for its construction. It uses a lightweight aluminium chassis and the first carbon fibre reinforced plastic passenger compartment in a large scale production vehicle, resulting in a kerb weight 30kg lower than a MINI Cooper S at 1,270kg. This also allows BMW to reduce the environmental impact of its four BMW i plants around the world. Renewable energy is used at all four sites (100% hydro-generated at BMW SGL Moses Lake US plant and 100% wind-turbine powered at Landshut, Leipzig and Wackersdorf in Germany). As a result, manufacturing the i3 consumes 50% less energy and 70% less water than for a conventional car.

Yet none of BMW’s trademark driver appeal has been lost. The car’s lithium-ion battery is mounted under the passenger compartment, offering a low centre of gravity, and powers a 170hp electric motor located between the rear wheels. It means the i3 offers the same rear-wheel drive dynamics, high-speed stability and low speed agility of conventional models, while matching the acceleration of a MINI Cooper S. Inside, unique materials include specially selected natural fabrics and leathers offered across four interior worlds, allowing drivers to customise the car to suit their tastes. The i3 is also available with a range extender, a small and efficient petrol engine used to maintain battery charge and increase the available range up to 186 miles of real-world driving. The result is environmentally conscious driving, but with no sacrifice in comfort, enjoyment or flexibility.

“THE NEW BMW i3 OFFERS ENVIRONMENTALLY CONSCIOUS DRIVING, BUT WITH NO SACRIFICE IN COMFORT, ENJOYMENT OR FLEXIBILITY.”

BMW i...

40 years in the making.

360° ELECTRIC – Removing the question marks.

The i3 revolutionises more than the product itself. BMW has developed a comprehensive support package for customers to make electric drive even easier to add to your fleet.

Home charging BMW believes most charging will take place at home. So, working in a global partnership with Schneider Electric, the i3 is available with an optional Wallbox home charging system and installation package, designed to work with the car and providing 80% battery charge in less than three hours.

Public charging The standard i3 features a bespoke satellite navigation system which shows public charging points and live availability. Drivers who subscribe to BMW’s ChargeNow service will be provided with pay-as-you-go access to public charging stations. All charging stations are displayed in BMW i Navigation.

Flexible Mobility Pre-launch electromobility trials have shown the i3’s electric range of up to 160km is enough for everyday use, but this can be increased if the car is fitted with the small 37hp range extender petrol engine. For occasional longdistance trips outside this range, customers can arrange short-term access to BMW Group vehicles.

Assistance Services Technology rich, the i3’s BusinessNavigation system can find the most fuelefficient route and even plan journeys using public transport. Drivers can preset cabin heating* and access charging and battery information via a smartphone app, and the i3 is offered with 24-hour support and recovery.

BMW i marks the pinnacle of sustainable motoring for BMW, which has long pioneered fuel-saving technologies that don’t sacrifice driver enjoyment. The arrival of the i3 marks the culmination of a development process spanning more than 40 years.

BMW 1602 Electric (1972) The 1972 Olympic Games in Munich marked the debut of BMW’s first electric vehicle, based on the 1602 saloon. Used as camera cars and transport for the organising committee, the two cars featured nowfamiliar technology including regenerative braking through the drive motor, but heavy (350kg) lead batteries and a 60km range meant the technology was far from production ready.

BMW E1 (1991) Debuted at the Frankfurt Motor Show in 1991, the E1 concept was a compact city car with space for four. It featured lightweight aluminium in its construction, with plastic exterior panels and housed the battery pack under the cabin with a motor at the rear axle, while a range of 150km miles meant it was viable for day-to-day use.

MINI E (2008) Offering the most in-depth study of real-world driver behaviour yet, BMW Group deployed 612 electric MINIs worldwide in 2008. These covered an average of 47.8km per day, and drivers reported they were suitable for 80% of journeys, held back mainly by the prototype’s two seats and compact dimensions.

BMW ActiveE (2010) Based on a 1 Series Coupe, the ActiveE was the first vehicle to use the 168hp electric drivetrain and technologies, which would later be found in the i3.

It marked a return of electric BMWs as part of the Olympic fleet, with 160 of the 1,000 cars deployed during the London 2012 games, and 20 have been retained for loans across the leasing industry since.

*with the optional Cabin preparation.

telematics

Mobile data marches on Mobile telematics monitoring is on the rise and UBI is gaining critics, reports Steve Banner. he privacy debate over whether telematics systems should or should not be used to track drivers, especially when they are off-duty, is dead and buried, right?

Wrong – at least so far as some international markets are concerned.

Describing telematics as “a fancy word for spying” in an article in Canada’s widely respected ‘Globe and Mail’ newspaper earlier this year, correspondent Andrew Clark said that the nature of human beings means that we all need space and time that is ours and ours alone. “We need privacy...but our private lives began evaporating with the introduction of the mobile phone and now car manufacturers and insurance companies are coming for what’s left,” he wrote.

What Clark was referring to is the phenomenon of what is sometimes referred to as UBI – Usage Based Insurance. A volun-

T

tary arrangement – at least for the moment – it involves installing sensors in a vehicle that allow a motor insurer to monitor a driver’s on-the-road behaviour in real time.

The insurance company collects and analyses this data, and if the individual concerned keeps to the speed limit, does not accelerate too harshly or take bends too rapidly, then they – or in the case of a fleet vehicle, their employer – pay a lower premium for cover.

On the face of it that sounds reasonable, but Clark argues that it involves too much intrusion into a citizen’s personal space.

“Cars mean movement, and movement means freedom,” he observes.

“And now they want to monitor our every hard application of the brakes or mild speed violation.”

Surely that is an over-romanticised view of motoring in the 21st century and

ALWAYS CONNECTED Mobile phones and portable devices mean drivers and operators can now be in constant contact.

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”While much of the privacy debate around UBI centres around the purchase of insurance by private motorists, it has implications for fleet operators too.”

an unrealistic one given the onward march of technology? Perhaps: but some North American legislators clearly believe that Clark’s concerns are justi ied.

In the USA in 2009, California passed legislation that permits UBI but only allows insurers to take mileage into account, he points out. The collection and use of any other data on a driver’s conduct at the wheel to determine premiums is banned.

UBI has its defenders. Among them is Dean Calapai, founder and chief executive of icer of telematics specialist IntelliTrac of Melbourne, Australia. His technology is at the heart of one of the country’s irst UBI schemes.

“It allows vehicle usage and driving behaviour to be analysed so that insurance premiums are fairly calculated,” he contends. “It means good drivers can begin reaping the rewards of safe driving.”

While much of the privacy debate around UBI centres around the purchase of insurance by private motorists, it has implications for leet operators too. That is especially the case where companies have had in-vehicle driver behaviour monitoring systems installed, sometimes part-funded by insurers or brokers and combined with a tracking system. The aim is to cut fuel consumption and wear and tear on components such as tyres as well as to reduce the number of collisions and, as a consequence, the number of insurance claims.

In Canada several challenges to the use of telematics packages in fleet vehicles by aggrieved workers asserting that they breach privacy have been made under PIPEDA: the Personal Information Protection and Electronic Documents Act. They have been heard and adjudi-

cated on by the country’s Privacy Commissioner who, although she does not have the power to impose penalties, can make recommendations. The complainant can then take the matter to the country’s Federal Court if so minded.

The conclusion to be drawn from these recommendations to date says Torontobased barrister and solicitor, Michael Power, is that the installation of a telematics system is, within reason, permitted under Canadian privacy law. “But there is not a lot of speci ic guidance on how best to use it,” he observes.

It would seem to him, however, that if employees are allowed the private use of a vehicle then there must be a mechanism in place to allow them to switch the system off

when they are not actually at work.

Consent by the employee concerned to the installation of such a system in the irst place would be desirable too, Power suggests. So would be a clear statement of company policy governing the use of telematics by the leet concerned.

Privacy legislation also has implications when it comes to cloud computing.

That is because telematics data and all sorts of other information on employees’ devices may end up being held on a third party’s server and accessed over the internet rather than kept on the leet’s own computer and accessed through a private server.

In many countries – member countries of the European Union (EU) for example - regulations insist that such data must be kept

UBI CONTROVERSY The ethics of Usage-Based Insurance has polarised telematics users.

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Mobile data marches on... ¡

safe. That could prove problematic if the third party server happens to be based in a country where data protection may be lax.

As a consequence the EU insists that such data cannot be held in countries beyond its own borders unless the country concerned has what the EU deems to be acceptable protection levels in place.

The use of telematics so long as it meets legal requirements can of course bring signi icant bene its as Delray Beach, Florida, USA-based Avita Coffee & Provision can testify. It delivers coffee to businesses all over south-east Florida and last year started to have a vehicle tracking system combined with onboard driver behaviour monitoring equipment installed by MiX Telematics.

Avita’s aims were simple. It wanted to cut its fuel costs and reduce the amount of time its drivers spent wandering off the route they should be on.

“I knew that extra gas usage and time spent outside of a delivery route was cutting into our bottom line,” says Avita president, James Clancy.

Once the MiX equipment was installed speeding promptly fell, yet deliveries were completed more quickly. “We became almost 40% more ef icient,” he observes.

As a consequence the irm has been able to take on more business without increasing the size of its van leet.

What Clancy and his colleagues really like is the package’s ability to deliver realtime information so that immediate action can be taken to deal with problems. In some cases remedial training can be delivered the same day if, for example, a driver has repeatedly braked with unnecessary harshness throughout the shift.

Managers can access the information, not just online via an of ice PC, but via a smartphone or tablet. The ability to use such highly portable devices so that executives who are out and about can manage leets just as effectively as they would be able to if they were in the of ice is becoming an increasingly important requirement.

Last April saw Northbrook, Illinois-based Hertz subsidiary Donlen launch DriverPoint Mobile, the smartphone version of its Dri-

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verPoint Telematics system, in the USA. Download the mobile version, says Donlen, and you can access many of the features seen on the full application.

Users can view all of a leet’s vehicles and their current status, search by vehicle identi ication number or driver name, look at the route a selected driver has followed and cast their eyes over graphs that show for example the leet’s green score.

Smartphones and similar products are increasingly being used by leets to provide delivery drivers with schedules and turnby-turn instructions on how to reach each drop-off point. Great Lakes Wine and Spirits of Highland Park, Michigan, USA, a distributor of beer, wine and spirits, is employing Descartes Mobile for Android in just such a way, says Great Lakes executive vice-president, operations, Lou Grech-Cumbo.

WORKING SMARTER Smartphones and similar products are increasingly being used by fleets to provide delivery drivers with schedules.

“We’re using it as part of an integrated routing and mobile solution from Descartes to help standardise our delivery processes and integrate our acquisitions,” he reports. “As a result we’ve improved the ef iciency of our operation and enhanced customer service.”

GreenRoad is another supplier that is making the most of what smartphones can offer.

Code-named Asimov, GreenRoad Smartphone Edition uses the functionality smartphones already enjoy, including GPS and built-in accelerometers, to allow it to act as an alternative to wired-in equipment.

GreenRoad offers a variety of driver behaviour monitoring and vehicle tracking

services with the aim of cutting accident rates, fuel consumption and the operator’s carbon footprint.

Recognising that fleet drivers have to buy in to its approach in order to be successful, it does everything it can to encourage them to improve their safety score. With this end in view, SmartPhone Edition has recently been enhanced with Facebook integration to make it easier for them to share their achievements with their friends.

Operators can of course offer their own encouragement in the form of cash bonuses and other awards.

Smartphone-based leet management solutions are inding favour in markets worldwide: in Slovakia for instance.

Viktor Bielko, leet business unit director at Sygic, a Slovakia-based provider of GPS navigation software, says that from his company’s viewpoint the growth in smartphone-based leet management solutions started two or three years ago.

That was when Sygic’s clients started to ask about Android applications.

Now 30% to 40% of Sygic’s clients are deploying their leet solutions on smartphones. Within two or three years the majority will, he predicts: another nail in the desktop PC’s cof in.

A wide variety of benefits are available from telematics packages to help companies boost efficiency and profitability. In the USA, for example, Telogis Route and Navigation has recently launched Telogis for Utilities.

It enables information on the whereabouts of a utility leet’s vehicles, some of which may be itted with specialist equipment, to be viewed by the utility and its subcontractors at the same time.

Says Telogis vice president, product management, Mark Wallin: “Being able to pinpoint where teams are, know their job status, connect with them easily and share information with contractors all on one screen – especially in a storm – can be vitally important when it comes to keeping teams safe: and getting the power back on.”

NEW INSIGNIA COUNTRY TOURER

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opel.com Fuel consumption combined 8.5–5.6 l/100 km; CO2 emissions combined 199–147 g/km (according to R (EC) No. 715/2007).

telematics

TELEMATICS becomes OE Incorporating telematics systems in the vehicle as original equipment is an obvious next step, as Steve Banner reports.

A

number of vehicle manufacturers have developed telematics systems and embedded them in their vehicles.

However, the role such packages occupy and the services they deliver is often somewhat different from the services provided by third-party suppliers such as Donlen.

These OE-installed packages are now being extended beyond the developed markets of North America and Europe.

Last July General Motors announced that OnStar services were now available on selected vehicles in Mexico, including the Chevrolet Cheyenne and the GMC Sierra pick-up. The package includes everything from the automatic summoning of emergency help if the driver is in a smash to diagnostic reports on the health of your car.

A Mexican call centre has been set up staffed with advisers who can provide OnStar users with advice and information including directions on how to get to your destination if you are having difficulties with your sat nav: or do not have access to a sat nav at all.

A highly profitable operation for GM, OnStar already has 500,000 subscribers in China alongside 5.7m in North America.

Since 1996 when the service began, it has helped to locate over 59,000 vehicles stolen in North America and its Stolen Vehicle Slowdown tool allows OnStar

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gradually and safely to reduce the speed of a car or truck remotely so that the thief can be apprehended by the police. An average of five to seven slowdowns take place every month.

GM has recently announced a deal with AT&T to provide 4G connectivity through OnStar from 2014 onwards. It will make it easy for a range of additional services to be offered, including entertainment streaming and – of rather greater interest to fleets – improved remote diagnostic links to dealers.

Not to be outdone, Ford announced in September that it was acquiring Ferndale, Michigan, USA based software developer Livio, which produces products and software tools designed to enhance in-car connectivity. By doing so it aims further to develop SYNC, its factory-fitted communications and entertainment system.

By 2015 it intends to have over 14m vehicles on the road worldwide equipped with SYNC and a further 7m fitted with SYNC AppLink, which allows drivers to control mobile apps with their voice.

Some manufacturers offer tracking systems that can be used as a management tool by fleet customers along with onboard driver behaviour monitoring units but they are not always quite what the fleet is looking for. A recent report from analyst Frost & Sullivan points out that some operators are wary of adopting

them because they do not want to be locked in to a particular make of vehicle, or because they run a multi-make fleet.

Installing a platform that is flexible and open could be one way of overcoming these objections. “Yet even if manufactur-

Ford aims to have 14m vehicles on the road equipped with SYNC by 2015.

Delivery drivers can record information on a job, trip or packagerelated basis and the data can then be sent to an inventory control system.

4G READY GM has announced deal to provide 4G through OnStar in 2014. ers start to offer fleet management systems as standard there is always a difference between hardware being in place and the service being activated,” observes Sathyanarayana Kabirdas, a Frost & Sullivan analyst.

The report predicts nevertheless that such manufacturer-sourced systems will grow in popularity over the next few years.

One manufacturer that has made significant strides when it comes to offering a built-in telematics solution is Daimler with its FleetBoard subsidiary. With customers in South Africa, Brazil and the Middle East as well as Europe, it can offer everything from tracking, navigation and text communication between the driver and his or her home depot through to the monitoring of driver style with an eye to achieving some improvement.

Delivery drivers can record information on a job, trip or package-related basis and the data can then be sent to an inventory control system if required so that stock can be re-ordered. With its 7” screen, FleetBoard’s DispoPilot.guide can, for example, transfer delivery addresses to the navigation system.

Nor is FleetBoard aimed solely at heavy trucks. For the past two and a half years it has been available as an OE itment on Mercedes-Benz’s Sprinter light commercial.

The rapidly increasing sophistication of smartphones and tablets may make embedding devices in a vehicle look increasingly old-fashioned, not to mention expensive, some industry executives believe.

“Companies are pushing for systems to be delivered at the lowest-possible cost

and OEM producers of onboard units are not able to compete with smartphones in terms of price and the use of the latest technology,” contends Viktor Bielko, fleet business unit director at Slovakia’s Sygic, a provider of GPS navigation software.

FleetBoard points out, however, that its use of apps allows fleet managers to access current and historic data by using their iPhone or iPad and it is an approach that is being applauded by operators.

“My schedulers have mobile access to our vehicles and use the app several times a day,” says Hubertus Kobernuss, general manager of Uelzen, Germany, transport fleet Kobernuss. “The technology works perfectly and I am very happy with it.”

The arrival of 4G alluded to earlier could make it far easier for managers in a control room to view real-time quality images sourced from onboard CCTV cameras of incidents as they unfold – an assault on a driver, say – and do something about them. That may involve contacting the police, and the recorded images could turn out to be valuable evidence in any subsequent court case.

Cameras can also deliver instant timeand-date-stamped proof that a particular item has been loaded onto a vehicle and off-loaded at its destination. While it is not quite true to say that the camera never lies, a picture can be worth a thousand emails.

IFW December/January 2014

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IN CHARGE. AT WORK. THE ALL-ELECTRIC BMW i3.

BMW i

Sheer Driving Pleasure

At BMW i, we know the corporate world is all about efficiency, so we’ll keep this short and simple. Why should fleet managers consider the all-new, all-electric BMW i3? First, with its highly dynamic and efficient BMW eDrive technology, it’s a perfect fit for innovationminded companies. Second, with its intelligent handling of resources throughout the value chain, it makes a strong sustainability statement. Third, with its connectivity features, it’s a functional workplace when required. Fourth, it can bring down the cost of ownership. And finally, as a genuine BMW, it’s going to put a smile on the faces of all of your colleagues.

And on yours. More: bmw-corporate-sales.com BMW i. BORN ELECTRIC.

BMW i3

bmw-i.com

0 g CO2 / km* 125 kW (170 hp)

* Zero-carbon operation, encompassing everything from power generation to use on the road, requires energy sourced entirely from renewable resources.

risk management

Learning from the professionals

Mandatory training for bus and truck drivers in the EU could help car and van drivers not covered by the legislation, as John Kendall reports.

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The first thing is to be aware of the conditions. The factors affecting a skid are speed, road condition, weight and road gradient.

All bus and truck driver licence holders in the 27 EU member states are now covered by the Driver Certificate of Professional Competence (CPC) requirements. Briefly, the system was introduced in 2008 for bus drivers and the following year for truck drivers in an attempt to improve the standards of driving among bus and truck drivers.

Previously, there was no EU-wide requirement for drivers who had passed the bus or truck test to undertake any further training.

This meant that they could pass their truck or bus test and drive for the rest of their working life without any further training.

Diesel engines and transmissions have changed greatly over the past 25 years, as have vehicle loading systems, drivers hours recording systems and many other aspects of large vehicle driving. Drivers cannot be expected to perform better if training about such changes is not part of their working life.

Driver CPC training is designed to cover three speci ic areas: safe and fuel-ef icient driving, legal requirements and health and safety. All bus and truck licence holders, with some exceptions, are required to undertake 35 hours of training in each iveyear period throughout the time that they hold their bus or truck licence.

Mercedes-Benz recently organised a Driver CPC training session with Crydel Training in the UK, covering rollover prevention and skid control. Apart from giving participants seven hours of training towards their Driver CPC requirements, some of the techniques taught are equally applicable to car and light CV drivers.

Volvo Trucks has gathered some statistics on accidents involving trucks in Western Europe and found that 55% to 65% of those killed or seriously injured in heavy truck accidents are car occupants and 15% to 25% of victims are unprotected road users, i.e. pedestrians, cyclists and motorcyclists.

Around 20% of heavy truck accidents occur during the night. Of those accidents involving heavy trucks in Western Europe, where road users are killed or seriously injured, Volvo’s analysis suggests

that some 45% include a rollover.

Statistics presented by Crydel Training during the course suggested that in the UK, rollover accidents are increasing, with around 700 to 1,200 occurring each year, compared with 300 to 700 in 2000. The reasons given for the increase include a switch to tri-axle tractor units, with the adoption of higher weight limits for trucks, a greater number of double-deck trailers, more powerful engines and the increasing number of traffic lights on roundabouts.

Most of these are peculiar to the UK. Twoaxle tractor units are more common in mainland Europe, for instance, while double deck trailers are rare outside the UK, because most other EU countries impose a 4.0m height limit for trucks, while the UK has no height limit. While other countries use roundabouts at road junctions, the UK’s high traf ic density has encouraged the use of traf ic lights on roundabouts with high traf ic volumes. The suggestion is that drivers tend to accelerate when they see an amber light, in an attempt to drive through before the light turns to red. Truck drivers doing that may carry too much speed into the roundabout, causing the truck to tip over.

Most trucks that roll over on roundabouts in the UK tend to do so on a right-hand exit. For most other EU countries that drive on the right side of the road, rollovers on roundabouts tend to occur on a left-hand exit. In both cases, this is where the truck takes the tightest turn for longest around the roundabout. It may be some distance from the roundabout before the truck rolls over.

The three greatest factors affecting a

rollover are speed, the vehicle’s centre of gravity and the turning radius. To demonstrate how little warning a truck driver might get of a roll over, Crydel Training showed us and gave us the opportunity to drive a truck with a trailer fitted with large stabiliser wheels. The truck was a tri-axle Mercedes Actros tractor unit with a liquid tanker semi-trailer, loaded to create maximum instability.

We were asked to drive in a circle at a speed where we felt comfortable, which for most was at around 18km/h. Then we were asked to increase the speed gradually until the trailer passed its tipping point.

This could be with as little increase in speed as 5km/h. More disconcerting was the absence of warning from the vehicle that a rollover was about to occur. The first most of us knew was when the semi-trailer tipped over onto the stabiliser wheels, which on the road would have turned the truck and trailer over onto its side.

To guard against a rollover on a roundabout or curve, drivers should keep checking their mirrors and, if an inside trailer wheel starts to lift, brake hard and keep the pedal pressed. Truck drivers should always leave a roundabout slowly and not accelerate until the complete vehicle is in a straight line.

Car drivers who have taken the UK Institute of Advanced Motorists driving test are taught not to stay alongside a truck for any length of time. That may be dif icult in congested, slow-moving traf ic, where roll over risks are lower, but that is clearly good advice in highway driving when trucks are travelling at maximum speed.

While spending as little time as possible alongside trucks at speed is the car driver’s safest option, many of the skid control techniques demonstrated on a low grip wet surface on the course can be used by car drivers to try and regain control in a skid.

The first thing is to be aware of the conditions. The factors affecting a skid are speed, road condition, weight and road gradient. It is not surprising that at higher speeds, it is easier to lose control,

IFW December/January 2014

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or more difficult to regain it if you need to take avoiding action.

A number of factors affect road conditions including the type of surface and weather. Concrete road surfaces offer some of the best levels of grip, but these have fallen out of favour because of the associated high levels of road noise. High grip asphalt surfaces are often used at roundabouts and road junctions, but some asphalt surfaces can offer comparatively low grip characteristics. Stone Mastic Asphalt (SMA) is widely used on European roads. The surface has been blamed for accidents because it could offer low levels of grip, even in the dry, particularly soon after the surface has been laid.

Most drivers know that weather conditions directly affect grip. Stopping distances are two times longer on a wet road compared with a dry surface. In ice and snow, stopping distances can increase by as much as 10 times, compared with a dry surface. When rain falls on a dry surface, grip is reduced to 30% of that in the dry, as a thin film of grease will have accumulated on the dry surface from tyres and other deposits from vehicles.

We drove Mercedes-Benz Actros tractor units for the skid control demonstrations but the same techniques can be used to try and regain control when driving a car or light CV. If you need to swerve to avoid

an obstruction on a low-grip surface, first brake in a straight line. Then steer to avoid the obstruction but use as small a steering angle as possible to avoid losing control. Since most cars are fitted with ABS brakes or ESC electronic stability control, ABS or ESC will allow you to keep braking while steering in most cases, although be prepared to release the brakes if necessary to give improved steering control. If you are driving a vehicle with a manual gearbox, press the clutch at the same time as the brake, because otherwise the driving wheels

will tend to lock up in braking and counter the effects of ABS or ESC. Vehicles with an automatic or automated gearbox will normally disengage drive under heavy braking, but neutral can always be selected, if in doubt.

Vehicle weight will affect stopping distances, because it will inevitably take longer to stop a heavier weight. A badly loaded commercial vehicle would be less stable and could also contribute to a loss of control. Not surprisingly, gradient will affect stopping distances, increasing them downhill and reducing them uphill.

IFW editor John Kendall receiving expert CPC tuition behind the wheel...

DRIVER CPC TRAINING: IS IT WORKING? Improving road safety and reducing road accidents in Europe is one of the objectives of the EU and the Driver CPC was designed to help bring that about.

Truck drivers who held a licence before 10 September 2009 have until 10 September 2014 to complete their first 35 hours of training. Many drivers and employers are looking for low-cost solutions to training and the course I attended, organised

by Crydel Training, costs around €530 per trainee for the day.

The company has been offering the course for some years but has seen demand fall since the Driver CPC was launched because cheaper cheaper courses

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that do not involve driving will satisfy the Driver CPC training requirements, even though the only way a driver can learn how to deal with such situations is by experience in a vehicle in or simulator.

The International Road Transport Union carried out research last year into the Driver CPC and found a range of issues.

One is that periodic training carried out in other EU Member States is not necessarily accepted in all Member States. Similarly training carried out ‘in-house’ by employers is not accepted in all Member States.

The research found variations in the quality of training between Member States.

The IRU research also found that the cost

of training varied greatly and in some countries the driver is expected to pay for the whole cost of the training.

No doubt the Driver CPC will continue to be developed – accident statistics will offer one measure of effectiveness.

Perhaps there should be a points system awarded to courses instead of the simple requirement to attend 35 hours’ training in five years – effectively one day per year. If practical or driving simulatorbased courses that are more expensive earned a driver more points than classroom-based training that costs less, it might be a greater incentive for drivers to learn these life-saving skills.

2014 fleet calendar International Fleet World’s guide to what’s happening in the fleet industry in the coming months – when, where and how to find out more info...

January 2014 15-26 North American International Auto Show (NAIAS), Detroit USA (PC) www.naias.com 16-26 Brussels Auto Salon, Brussels Expo, Belgium (PC) www.salonauto.be 17-19 Memphis International Motor Show, Memphis Cook Convention Center, Tennessee, USA (PC, LCV, CV) www.motortrendautoshows.com/memphis 23-2 February Washington Auto Show, Washington DC, USA (PC) www.wananda.org February 7-11 New Delhi 12th Auto Expo, New Delhi, India (PC, CV) www.siam.in 8-17 Chicago Auto Show (provisional), Chicago, USA (PC, LCV) www.chicagoautoshow.com 14-23 Canadian International Auto Show, Toronto, Canada, (PC) www.autoshow.ca March 6-16 Geneva International Motor Show, Switzerland (PC) www.salon-auto.com 13-18 Cairo International Motor Show, Cairo, Egypt (PC) www.mondial-automobile.com 21-26 Zagreb International Auto Show, Zagreb, Croatia (PC, LCV, CV) www.zv.hr/autoshow 25-29 Belgrade International Motor Show, Belgrade, Serbia (LCV, CV) www.belgradefair.rs 25-6 April Bangkok International Auto Show, Bangkok, Thailand (PC, LCV) www.bangkokmotorshowgroup.com/bangkokmotorshow April 8-11 NAFA Institute and Expo, Minneapolis Convention Center, Minneapolis, USA (PC, LCV, CV) www.nafa.org/conference 18-27 New York International Auto Show, New York, USA (PC) www.autoshowny.com 21-29 Beijing Auto Show, Beijing China International Exhibition Center Exhibition Hall, Beijing, China (PC, CV) www.chinaexhibition.com 29-1 May CV Show, National Exhibition Centre, Birmingham, UK (LCV, CV) www.cvshow.com August 12-21 Indonesian Motor Show, Jakarta, Indonesia (PC, LCV, CV) www.dyandra.com 28-7 September Moscow International Automobile Salon, Moscow, Russia (PC) www.oar-info.ru September 25-2 October IAA Commercial Vehicle Show, Hanover, Germany (LCV, CV) www.iaa.de October 4-19 Paris Motor Show, Paris, France (PC) www.mondial-automobile.com 29-30 Kiev International Motor Show. Kiev, Ukraine (CV) www.mvc-expo.com.ua 31-9 November Istanbul International Motor Show, Istanbul, Turkey (PC) www.odd.org.tr November 21-30 Los Angeles Auto Show, Los Angeles, USA (PC) www.laautoshow.com KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

IFW December/January 2014

29

interview

Euro6 time for contract hire MAN has renewed its entire truck range to comply with Euro 6 emissions, and now UK CEO Des Evans wants customers to buy kilometres, not trucks. Ian Norwell reports.

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CHANGING TACK? Contracting out servicing comes hard to truck operators who run their own workshops. Letting loyal employees go, and giving the task to the local franchised dealer has become progressively more tempting as the complexity of vehicles, and the rigours of compliance, have grown. Look deeper, and more operators could be tempted to go for contract hire and relinquish ownership of the trucks, taking them off balance sheet.

Des Evans, MAN Truck and Bus CEO in the UK, is taking the process a stage further by selling hauliers kilometres, leaving them to provide just drivers and diesel. He tells IFW, “We have a contract with Shell, via Hoyer, for their tanker leet. We are contracted to supply them one million kilometres of transport on each of 139 tractor units over ive years.

They needed costs they could put a lid on, so we gave them a ppk (pence per kilometre) rate to cover the entire provision, apart from diesel and drivers.” That’s a tempting offer, particularly when penalty clauses against the manufacturer, for non-provision against a service level agreement, are included.

SELF-POLICING We suspect that Evans, ever the canny salesman, is attempting to ride the wave of worry

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over technology that surrounds progressive emissions legislation. He admits that Euro 6 is not complicated, referring to it as “A breath of fresh air.” But there are additional issues to bear in mind for servicing.

SCR-based systems (selective catalytic reduction) with their associated AdBlue additive tanks are one, and MAN now uses SCR in conjunction with its established EGR (exhaust gas recirculation emissions control technology), which will need a DPF (diesel particulate ilter). Car leet managers would do well to pay attention here, as the issues surrounding DPFs will land on their mat too, as increasing numbers of high performance diesel cars hit the roads.

Depending on duty cycle – a major in luence on service requirements – DPFs will need specialist cleaning. To avoid putting a truck out of service, some operators would be well advised to acquire a few spare ilters to use, on a service exchange basis. An unbolt and bolt-on process can be integrated into a planned maintenance schedule, rather than incurring expensive down time.

Filter cleaning is currently a specialist job, but large leets could decide to invest in a cleaning system and be independent.

For truck drivers who ignore the warning lights, OBD (on board diagnostics) would

intervene. After 36 hours of non-compliant running (during which time your OCRS (operator compliance risk score) would be in jeopardy), engine torque would be reduced, and after 64 hours a forced speed reduction to 20km/h would effectively strand the vehicle.

Duty cycles will be a critical element here.

Urban work for trucks and buses, and for cars that are driven at low revs for economy, will ironically pay the price by getting the DPF clogged, and bring on the ‘clean me’ light irst.

SCR CONVERT They say that there are none so righteous as the recently converted. MAN’s Euro 6 statement claims to have been ield-testing SCR since 1995, when Euro II had only just been introduced. In any event, the industry trend seems to be shunning EGR. Iveco is refusing to use it at all, on the grounds of higher operating temperatures and fears about engine longevity. Renault’s new truck range uses an ‘EGR Lite’, which only functions while the engine is getting up to operating temperature. Renault Trucks’ vice president Thierry Hours, conceded that EGR was only being tolerated as a necessary evil, until SCR systems have been further re ined. Watching the trend develop among the major manufacturers will be interesting.

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Going the distance Can a Ford Fiesta van really return 2.6lit/100km on the road? Read on‌

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ECONOMY CHAMPION Ford Fiesta Van returned an incredible 2.6lit/100km fuel consumption on the event.

D

evised by Fleet World Group over 10 years ago, the MPG Marathon was designed to demonstrate the economy potential of cars driven on the road in ordinary traf ic conditions. Each car is entered with a team of driver and co-driver and must average 30mph throughout the 2 days of the event. For 2013, participating vehicles were equipped with TRACKER tracking systems to monitor speed, distance and driving style.

This year, teams were given the location of the checkpoints over the two days and were free to devise the best route from point to point. The idea was that drivers would plan a route, just as they would if they were driving to a business meeting.

Drivers could choose any route they thought might be advantageous to them with the aid of route planning software, or websites and satellite navigation, as well as old-fashioned paper maps.

Even though teams had a free choice of route between checkpoints this year, the event is tightly managed. After the vehicle’s fuel tanks have been illed to the brim they are sealed to ensure that the vehicle can only be re-fuelled by the event organisers.

THE ROUTE On both days, the route began and ended at Tankersley Manor, heading south-east on day 1 towards the city of Lincoln and the irst checkpoint at Washingborough Hall, then onto York and back to Shef ield. Some of the route could be covered on motorway, but most of the distance had to be covered on the UK’s ordinary road network.

Day 2 saw teams heading off south-west across the Pennine hills into Cheshire, then onto Staffordshire and then inally north again back to Tankersley Manor. Hills gave drivers plenty of challenges for their economy techniques – go for power or use gentle acceleration and risk losing momentum?

Prizes are awarded for both the lowest fuel consumption achieved for the class of vehicle or the best percentage improvement over the of icial published NEDC combined fuel consumption igure. Vehicles were split into 10 classes according to fuel, CO2 emissions and vehicle type with ive classes for cars and ive for light CVs. Penalties are awarded for vehicles that did not meet the required minimum speed.

As always, there was a wide variety of entries for the event including eight light CVs and 14 cars. A rule change for 2013 caps CO2 emissions for cars at 180g/km.

Not surprisingly, most cars were diesel powered, ranging from the 83g/km CO2 Renault Clio dCi 90 with stop and start to the 129g/km Jaguar XF Sportbrake. That left just 3 petrol powered cars from the 109g/km CO2 Audi A3 1.4 TFSi S Tronic to the 139g/km Peugeot 208 GTi. Having driven in most Marathons I was back this year with my regular co-driver Paul Nieuwenhuis, at the wheel of the Peugeot 208 GTi. Unfortunately, we had not driven the car

engine offered plenty of low down torque, like a diesel, so revs could be kept low – there was rarely a need to use more than 2,000rpm, even when climbing hills.

And it paid off. The Peugeot returned 4.76lit/100km over the 2 days, a 24.00% improvement over the of icial combined fuel consumption igure, enough to give us the trophy for best percentage improvement for the event among the cars. The lowest fuel consumption for cars was recorded by a Ford Fiesta ECOnetic 1.6 TDCi driven by event irst timers Nick Chapman and Rosemary Homer, who returned 3.19lit/100km.

VICTORIOUS!!!

IFW editor John Kendall won the % Improvement prize in this year’s event behind the wheel of a Peugeot 208 GTi. at all before we made our way to the start line on the irst morning of the event. That meant we had to ind out the best way to drive it for economy as we went along and determine the best cruising speed. We had already carried out some route planning, but we would have to decide as we went along which roads might offer us the best option.

The Peugeot was itted with interactive satellite navigation that monitors traf ic conditions ahead and offered an alternative route if traf ic was moving slowly. That proved to be a valuable tool. The system also gave a choice of settings and we chose to follow routes that were optimised for both time and distance. The 208 GTi proved to be very easy to drive economically even though it is set up to deliver performance, not economy. The turbocharged 1.6-litre

But it was a van that returned the lowest fuel consumption during the event, a Ford Fiesta Sport Van 1.6 TDCi with 2.60lit/100km – an improvement over its of icial combined consumption of 38.62%.

ECO DRIVING TIPS • Accelerate gently • Look as far ahead as possible • Plan entry to roundabouts to avoid stopping if possible • Keep to speed limits • Make sure tyre pressures are correct • Keep to the recommended service schedule • Avoid sudden braking • Use the highest possible gear • Don’t let the engine idle unnecessarily

IFW December/January 2014

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fleet focus SWEDEN

Strong economy aids Swedish recovery

MADE IN SWEDEN

Sweden might be a comparatively small car market, but it’s a thriving motor manufacturer with a healthy economy, says John Kendall.

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Volvo Truck is the only remaining Swedish- owned volume vehicle manufacturer

Sweden is reckoned to be the third largest country in the European Union by area, yet has a population of some 9.6 million, giving it a comparatively low population density. The country boasts a high per capita income, reckoned to be between the seventh and tenth highest in the world, depending on the data source.

Sweden was ranked second in the world on the Economist Intelligence Unit 2013 Democracy Index and the fourth most competitive country in the world by the World Economic Forum in 2012.

Iron ore is one of Sweden’s largest economic assets so it’s not surprising that motor vehicle manufacture is in the country’s top three industries, despite the bankruptcy of car maker Saab in 2011.

Saab may yet rise again in the hands of Chinese consortium National Electric Vehicle Sweden (NEVS). Production is due to begin again in March 2014, producing an electric model based on the now defunct Saab 9-3. There is talk of a replacement model and drivetrain components sourced from Fiat for models powered by internal combustion engines.

Volvo Cars has been more successful.

Having been grown into a thriving independent manufacturer, the Volvo Group sold the company to Ford in 2000. Ford then sold it to Geely of China 10 years later. Sweden’s other car manufacturer is high performance maker Koenigsegg.

Sweden’s truck and bus manufacturers Scania and Volvo are the other remaining vehicle manufacturers. Scania is now part of the Volkswagen Group and it is likely that it will progressively share more development and components with Volkswagen’s other truck and bus manufacturing subsidiary MAN of Germany.

That leaves Volvo Truck and Bus as the only remaining Swedish owned volume vehicle manufacturer, based near Gothenburg on the west coast of Sweden. Volvo bought into the US Truck market in the 1980s by acquiring the White and Autocar brands and forming a joint venture with GM. The company subsequently acquired

GM’s truck division in 1997. Shortly afterward, Volvo acquired the Renault Group’s truck and bus making division in 2001, including Mack Trucks of the US. A few years later Volvo took control of UD Trucks of Japan, formerly Nissan’s commercial vehicle division, Nissan Diesel.

Sweden rode out the European financial crisis relatively well thanks to its strong economy. The country suffered its own problems during the early 1990s European recession when it was plunged into a deep financial and property crisis. In the succeeding years, the economy made a strong recovery and the 2008 financial crisis hardly touched Sweden, although the economy declined in 2009, but returned to growth in 2010 and 2011.

Growth slowed again in 2012 with modest growth returning in 2013.

This has been reflected in the car market in Sweden. Total passenger car registrations dropped by -8.2% in 2012 to 279,899.

For the first nine months of 2013, registrations have slipped further, with an average decrease for the year of -5.2%, greater than the EU 27 average of -3.9%. This leaves the total at 193,065, compared with 203,711 for the first nine months of 2013. October data showed further improvement with October registrations rising 5.42% to 25,322, compared with October 2012, according to the Swedish motor manufacturers association BIL Sweden. Registrations for the January to October period saw a further squeeze in the declining trend with a total of 218,397, -4.1% lower than the same period in 2012. If the average decline continues for the rest of the year, Swedish car registrations are likely to fall to around 268,400 units in 2013.

The Swedish National Institute of Economic Research publishes an Economic Tendency Survey and in October, the Economic Tendency Indicator rose 3.4 points from 98.2 in September to 101.6 in October.

The Consumer Confidence Indicator climbed 4.1 points from 97.9 in September to 102 in October and inflation is expected to remain low in the coming 12 months.

Overall, the outlook is good, so is that confidence reflected in the business car sector?

According to Alphabet, the factors affecting the overall Swedish car market include the relatively minor economic impact from the Euro crisis, financial assistance from distributors and importers and strong demand to replace the large number of vehicles that were ordered in late 2010.

“There is a split picture because the consumer market is really suffering”, says Per Löfgren, sales director at ALD Sweden (pictured), “I think this is depending on the level of uncertainty in the economy as a whole.

People are not worried for their own jobs, but worried for the country as a whole.”

The effect has been to dampen demand in the retail sector, although the registration data suggests that maybe Swedes are beginning to worry less.

The Swedish business car market is estimated at between 220,000 and 300,000 cars in total. “This part of the market represents 50% to 60% of new sales,” reckons Per Löfgren. “I wouldn’t say that it is not affected by the economy, because it is, of course, but not at all as much as the consumer market. I think it’s too early to say that everything’s doing OK, but we’ve seen the orders picking up for the last two months,” he says.

It is not particularly surprising to find that Volvo does well in the Swedish business car market, remaining the first choice. Given the relative wealth of the economy, it is not surprising either to find that BMW and Audi are also favoured brands in the Swedish business car sector, as well as Volkswagen. Löfgren makes an interesting observation that could affect the re-marketing sector; “The Asian brands are very much the growing brands within the consumer market, so this has the effect that used car sales coming from the fleet market are not always what the private individual would like to buy. It’s a real mis-match sometimes. So the real

IFW December/January 2014

35

¡

fleet focus SWEDEN

Swedish recovery... ¡

competitor to a new Asian car is a two or three year-old BMW. And from our point of view it also works the other way. When we want to remarket our two, three, or four year-old company cars, the alternative is to go and buy a Kia for €16,000.”

Alphabet is clear about what types of vehicle are preferred for business use.

Drivers prefer larger station wagons, with diesel engines and an automatic gearbox.

The most popular tend to be the Volvo V60 and V70 as well as the Volkswagen Passat. Per Löfgren at ALD largely agrees, “We tend to have medium-sized estate models with low consumption, but the size of the cars in Sweden is still larger than in the rest of Europe.” He notes the popularity of models such as the Volkswagen Passat, Audi A4, BMW 3 Series and Volvo V60. “If you look at the segment below, the only one really succeeding in the company car segment is the BMW 1 Series.” The change has come in the larger car segment, reckons Löfgren. Models such as the Audi A6 and BMW 5 Series are not now as popular as they once were.

He also reckons there has been a downsizing trend in light commercial vehicles.

“Utilities companies and maintenance fleets don’t carry as much as they did some years ago.” He also believes that many commercial vehicle fleets are not covering the same distances as they used to. At the same time, light vans are more car-like to drive than ever before and this is giving drivers a better working environment. Alphabet sees a variety of light CVs in fleets, depending on need, but notes that the Volkswagen Caddy is the most common model.

Business car taxation is comparatively straightforward in Sweden. Alphabet says, “There’s a driver’s benefit added to the personal taxation for the driver in Sweden. The benefit is calculated from a formula involving an indexed base price,

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social taxes, the vehicle’s price, eventual deduction due to environmental impacts of the vehicle and the work related yearly distance driven by the driver.”

Per Löfgren says there are no environmental taxes for business car users, although all cars are subject to a carbon dioxide emissions-based vehicle tax. But he believes that a form of bonus-malus system is likely to be introduced. The only problem he can see is that the difference between the most and least polluting cars has narrowed in recent years, making it more difficult to introduce a banding system that graduates between the best and the worst.

Finance leasing remains popular in Sweden, but operational leasing is gaining in popularity. “The most common method in existing fleets is finance leasing,” explains Löfgren at ALD. “But the fastest growing now is operational leasing. It accounts for over 20% of the market now and is growing more rapidly than finance leasing.” He puts this down to a demand for more services from fleet customers, such as managing the fleet. He also sees a trend where traditional company fleet managers are not replaced when they retire.

Fleet finance could be provided from one of several sources including banks, leasing companies and captive providers, “Volkswagen and Volvo Finance are very strong in all segments, when it comes to car loans, finance leasing and operating leasing,” says Per Löfgren. “Then the international leasing companies are very dominant when it comes to international companies because of their big fleets.”

So what of the future? Alphabet believes this will depend on the future taxation of company cars. The company says that the Swedish government is not known for long-term guidance in this area and if carbon dioxide taxation is tightened, it will

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result in a shift to smaller vehicles.

In terms of the vehicles themselves, Per Löfgren expects to see an increased take up of hybrid and plug-in hybrid models: “There will be a growing demand for electric vehicles, but the major threat to them is that plug-in hybrids will be more popular.”

remarketing

SWEDEN

Signs of used market growth Brian Madsen, country manager of Autorola Sweden, looks at how buyers and sellers are adapting their remarketing strategies to keep up with a heavily changing used car market.

T

he Swedish car market has been impacted by economic development and instability within Europe, with the sale of new cars falling from 305,000 in 2011 to an estimated 275,000 in 2013.

This situation has created instability and has hit the car dealers hard on stock value, cashflow and profit. Most dealers have managed to reduce their stock of used cars and many dealerships are managing stock much more carefully.

From January to July 2013 Autorola saw a fall in dealer used car stock from 72,000 cars to 66,000 cars, a total reduction of 6,000 or 9%.

The sale of used cars is increasing in number but still the prices are under pressure and there are reports of a 10-15% drop in values of many 36-month old cars.

Households who have been holding back on spending are now starting to slowly buy cars again and low interest rates are helping the car market grow again. Sales of new cars are increasing and in September 2013 registrations increased by 11.2%, compared with September 2012, which is the third month with a positive growth versus 2012.

The current used car market means that dealers are being more careful about their stock level and stock turnover.

Prices are under pressure and the dealers are spending more time searching for the right cars with high stock turnover levels. As a result more traders are signing up to source cars online through the Autorola platform.

Autorola Sweden has invested in new IT structures and has been able to grow and start new partnerships on the back of this change in market conditions.

The launch of a new Search Agent function allows dealers to find lists with the exact type of stock cars they need, and is a major help for dealers to buy the cars they need. Autorola is seeing a growth in the number of cars being imported using this facility.

Sales of cars between dealers continue to increase and interest from other countries for Swedish cars is leading to more export sales via Autorola’s online channel.

Autorola’s IT platform and fleet management system provides a 360-degree management of online inspections and branded auctions only visible for specific dealer networks. Leasing companies, rental companies and OEMs that have regular used stock coming to the market are now partnering with Autorola to use online sales channels more proactively as part of their overall remarketing strategies to speed up sales and maximise used values.

The change in market conditions is therefore opening new doors for Autorola and the Swedish market for online remarketing is changing all the time. Vendors are changing the way they present their cars to potential buyers and how dealers optimise their stock, because online is faster and more efficient.

IFW December/January 2014

37

fleet profile Ĺ KODA

Joining the renaissance Mark Bursa reports on one of the industry’s success stories...

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Škoda is not a cheap Volkswagen. Our brand has become younger and more dynamic.

Winfried Vahland, Škoda CEO

T

he renaissance of Škoda under Volkswagen Group is one of the most extraordinary auto industry stories of the past 20 years. The Czech manufacturer has travelled from downtrodden Communist brand to fast-growing, full-range automaker in remarkably quick time. This year, only a raft of model changeovers will see global production fall short of a million units – the milestone will unquestionably be reached in 2014.

And while Škoda’s foundations are built on retail sales, a growing emphasis on leet business is one of the key drivers behind the company’s growth this year. Recentlyappointed UK Fleet Sales Director, Patrick McGillycuddy says the target is for Škoda to reach a 50:50 retail-to- leet split, moving from its current 60% retail, 40% leet mix. Škoda’s 21st century expansion has seen the range expand to seven models, covering all mainstream sectors from city car to upper medium, together with compact MPV and SUV models. The emphasis is on affordability and practicality, which has helped Škoda’s appeal in tough economic times – though Škoda is these days far from being a ‘budget brand’ along the lines of former East European rival Dacia.

While Škoda leverages Volkswagen Group platforms and powertrains, the cars’ design and identity is kept very separate and has been allowed to develop on its own track. Škoda CEO, Winfried Vahland said: “Škoda is not a cheap Volkswagen. Our brand has become younger and more dynamic.”

Indeed, the brand’s image is not far from the position outlined by former VW chairman Dr Ferdinand Piech in the early 1990s, where he said Škoda’s key rivals were “Volvo, Rover and Saab.”

Škoda has outlined mid-term plans to boost global output, including operations in China and India, to 1.5 million cars by 2018.

By then, Škoda targets selling 60% of its total production outside Europe. European markets currently account for 67% of Škoda Auto sales at present. A third of the total volume will be in China, where the Fabia, Octavia and Superb are already on sale and the Yeti is about to follow. Škoda’s entire model range will have been renewed between 2012 and 2015, and a larger SUV model is expected to be added, but trims and segments will be kept simple.

The basic brand strategy is to remain within its price point. Over-equipping cars with expensive technology would affect its position in the market, which is why Škoda’s ecomodels are conventional diesel greenline versions, not electric or hybrid cars. Škoda’s entire model range will have been renewed between 2012 and 2015, with the Rapid (below) the most recent addition...

GLOBAL SALES Škoda worldwide sales in October 2013 grew sharply by 7.5% to 83,000, setting a new October record for the brand and taking

year-to-date sales to 768,700 in the irst ten months. In Europe, Škoda saw double-digit growth of 13.7 % to 55,700 units, with a particularly strong performance in Germany, the brand’s largest European market.

Cumulative global January-October sales of 768,700 vehicles worldwide represent a slight decline of 3.3% on 2012, where sales in the corresponding period reached 795,100. But Škoda puts this down to the effect of three major model launches in the irst half of 2013, including the run-out and ramp-up of the Octavia sedan, the biggestselling model in the Škoda range.

“With an increase of 7.5% in October, we have irmly con irmed the positive trend of recent months,” said Werner Eichhorn, Škoda board member for sales and marketing. “The global growth once again demonstrates the power of the brand and the appeal of our young model range. The new and revised models have been exceptionally well received. The new Octavia has a very high customer acceptance and has exceeded our expectations.”

In Western Europe, sales of the new Octavia increased by 48.8% in October and in Central Europe by 23.1% compared to the same month in 2012. Škoda’s market share in Europe grew in the irst 10 months of 2013 to more than 3.9%. The market launch for the new Octavia in China is set for next year.

New Octavia is bigger than its predecessor: it is 90mm longer, 50mm wider and has a 100mm longer wheelbase than the previous model. Despite this, the new car is 102kg lighter thanks to increased use of lightweight steels in the bodyshell.

The latest Škoda model to be launched is the Rapid Spaceback, a more conventional European-focused compact hatchback

IFW December/January 2014

39

¡

fleet profile ŠKODA

¡

version of the three-box Rapid that was launched at the end of 2012. The Rapid Spaceback takes Škoda into the largest vehicle segment in Europe, and it is expected to contribute major growth in 2014 as Škoda targets full-year sales of 1 million units for the irst time in its history.

Rapid Spaceback marks Škoda’s return to the compact hatchback class for the irst time since the Felicia model of the 1990s, and it is expected to outsell the more conventional three-box Rapid in European markets by as much as two-to-one. It will compete with the Hyundai i30 and Kia cee’d, as well as mainstream models such as Ford Focus and Opel/Vauxhall Astra.

In the UK, for example, Škoda expects to sell around 8,000 Rapid Spaceback models against 4,000 Rapids in 2014. The UK is Škoda’s fourth-largest market after Germany, China and Russia, and is expected to account for 65,000 sales in 2013. By 2018, Škoda could be selling 100,000 cars in the UK, believes UK brand director Alasdair Stewart.

“The Spaceback opens up a new sector for Škoda, a bit like when we introduced the Citigo,” he said. “It will appeal to younger buyers and families, and will be more lifestyle-driven, so we will take a more digital approach to selling.” Stewart said Škoda’s customer retention, at 30%, is the highest in the Volkswagen Group, but he is targeting an increase to 45%.

Meanwhile Škoda’s European dealer network has been spruced up, with a new corporate identity package based around the latest Škoda corporate ID, introduced in 2011. A number of leet sales specialists – around 25 in the UK out of a network of 134 – have been appointed, and Škoda has beefed up its area management team in the UK, with eight managers handling key account sales, increased from three.

Pre-orders are already rolling in for the fundamentally revised Yeti SUV, which is due for launch in January 2014. The new Yeti will be available in two visually different versions – a standard two-wheel drive Yeti aimed at urban customers and a beefed-up 4x4 version called Yeti Outdoor.

In Western Europe, Škoda has outperformed the overall market. In the irst ten months, the brand’s market share in Western Europe grew to 3.1% (3.0% in 2012), and recorded a signi icant increase of 17.3 % in October, with 32,400 units sold compared to 27,600 units a year earlier.

In Germany, Škoda’s second-largest market worldwide after China, Škoda is now

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the largest import brand; sales increased in October by 23.5% to over 12,100 units. Škoda also saw double-digit growth in several other markets, including the UK (5,700 vehicles, up 23.1%), Denmark (1,400, up 32.0%), Finland (830 vehicles, up 33.6%), Italy (900 vehicles, up 23.0%), the Netherlands (1,200 vehicles, up 21.3%), Norway (760 vehicles, up 25.8%) and-

ŠKODA

SALES BY MODEL, OCTOBER 2012 Model Octavia Fabia Rapid Superb Yeti Citigo Roomster

Units 34,200 15,500 12,000 9,100 7,200 3,300 2,500

% chg YOY +0.6% -17.5% +426.3% -2.5% +2.2% -13.0% -8.9%

TOTAL

83,000

+7.5%

Source: Škoda

Spain (1,000 vehicles, up 56.6%). In Norway, Škoda achieved its best-ever monthly sales result.

Central European sales increased signi icantly above the market average by 21.6% in October to 12,000 vehicles (October 2012: 9,800). This meant Škoda’s market share increased to 20.5% in October. In the Czech home market, Škoda saw signi icant growth, against a market that declined

slightly overall. Deliveries to customers in the Czech Republic reached 5,700 units (up from 5,300), an increase of 8.2 %. Škoda’s 10-month market share in the Czech Republic stands at 35.8%.

In Eastern Europe, Škoda delivered 11,400 vehicles to customers in October, a slight decrease of 1.7% on 2012’s 11,600.

After ten months, Škoda’s market share in the region stood at around 3.9%. In Kazakhstan, the brand saw a three-fold increase in sales, selling more cars in one month than ever before, while the three Baltic States (Estonia, Latvia, Lithuania), saw combined sales of 700 units, up 66.6% on October 2012. In Romania, the brand grew by 24.1% with over 600 units and in Serbia by 16.2% with 400 vehicles.

However, in Russia, Škoda’s third largest market, sales fell 14.5% from 8,300 units in October 2012 to 7,100 vehicles.

China sales of 21,500 vehicles in October fell 6.0% against October 2012’s 22,900 units. Nevertheless, this was still the fourthstrongest sales month for Škoda since its entry on to the Chinese market six years ago. Cumulatively over the irst ten months, Škoda sold 199,200 vehicles in China, down 2.7% on January-October 2012’s total of 204,800, partly due to a model change for the Superb and the fact that the new Octavia has yet to go on sale in China.

In India, deliveries increased by 16.1% to over 2,300 vehicles, boosted by the recent launch of the new Octavia on the Indian market.

FABIA

FABIA ESTATE

ROOMSTER

CITIGO

OCTAVIA

OCTAVIA ESTATE

SUPERB

YETI

SUPERB ESTATE RAPID

RAPID SPORTBACK

QUALITY CONTROL Škoda Octavia rolls down the production line at the Mlada Boleslav plant in Czech Republic, alongside Fabia & Rapid.

GLOBAL FLEET SALES STRUCTURE Fleet sales tend to be structured nationally, but Škoda does have frame agreements with some multinational customers, generally under the umbrella of the Volkswagen Group Fleet International (VGFI) business.

This highly successful business coordinates international key account sales of Volkswagen, Audi, SEAT and Škoda vehicles, and VW Group claims VGFI is market leader in the ive largest individual EU markets – Germany, UK, France, Spain and Italy – in terms of key account business. According to analysts Dataforce, a total of 155,433 VW Group vehicles were registered in the leet market in the “big 5” markets in the irst quarter of 2012.

EUROPEAN PRODUCTION FACILITIES Škoda is one of Europe’s oldest automakers – its roots lie in the Laurin & Klement cycle producer, established in 1895. The first motor vehicle left the Škoda factory at Mlada Boleslav in 1905, where the company’s head office and main production base remain to this day. Cumulative production since then has topped 15 million vehicles, more than 5m of which

were produced in the past six years.

Two further production plants were established at Kvasiny and Vrchlabi in the Czech Republic (then still Czechoslovakia) prior to the Second World War, and these are both still part of Škoda’s European manufacturing base. Škoda currently manufactures the Fabia, Rapid and Octavia models at the Mlada Boleslav plant, which employs around 20,000 people. The plant also supplies the Rapid-based Toledo model to VW sisterbrand SEAT. The site also includes a major engine production hall, which supplies three-cylinder 1.2 MPI petrol engines and supercharged TSI petrol engines to Škoda and to other Volkswagen Group brands.

Mlada Boleslav also produces MQ100 and MQ200 manual gearboxes, axles and other car components. The town is also home to the company headquarters, technical development, design and training facilities.

Earlier in 2013, Škoda added a new modern and environmentally friendly stamping line at Mlada Boleslav. Through energy recovery and storage, the servo press line is said to be up to 15% more efficient than older, comparable systems,

while also being faster and more precise.

The Kvasiny plant irst started production in the 1930s, initially for Jawa. Today it produces the company’s lagship Superb saloon and Superb Combi, the Yeti SUV and the Roomster compact MPV. Since 2012, the Vrchlabi plant has been producing sophisticated DSG automatic transmissions for the whole VW Group.

The seven-speed dual-clutch DQ200 transmission is one of the most innovative automatic transmissions in the industry. The plant has recently increased capacity to 1,500 units a day. Škoda also sources cars from the Volkswagen Group multi-model assembly plant in Bratislava, the capital of neighbouring Slovakia, which started production in 1993.

Currently this modern factory produces around 420,000 vehicles every year.

Octavia models were made there until 2010, but since 2011, Škoda has sourced the smallest car in its range, the Citigo, from Bratislava. Citigo is part of the New Small Family series, which also includes the technically identical Volkswagen Up! and SEAT Mii models. In 2012 more than 36,000 Citigos were produced in Bratislava. ¡

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fleet profile Ĺ KODA

With well over half a million units produced in China, the Octavia is the most popular Ĺ koda model on the market.

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RUSSIA & CIS MARKETS The Volkswagen Group assembly plant in the Russian city of Kaluga, south of Moscow, was of icially opened in 2007. Cars were initially delivered as Semi-Knocked-Down (SKD) assembly kits. Full-scale production started in 2010 and now 150,000 units roll off the production line every year. Škoda Fabia and Octavia are produced in Kaluga alongside Volkswagen and Audi models.

A second production plant was opened in 2011. This is located at the GAZ plant in Nizhny Novgorod, and the Yeti has been assembled there since late 2011, again initially from SKD kits, but since the end of 2012 from Completely Knocked Down (CKD) kits.

In June 2013, Škoda added production of the redesigned Octavia at Nizhny Novgorod. Octavia is the brand’s best-selling car in Russia. “We are aiming for strong growth in Russia in the years ahead, and the start of production of the new Octavia is a very important step in this direction,” said CEO Winfried Vahland. “Russia has become our third-most important sales market worldwide and our number two in Europe. The Octavia currently accounts for more than half of our sales in Russia.” Škoda plans to produce 110,000 cars annually at Nizhny Novgorod and wants to boost its combined output at its two Russian factories to 350,000 cars annually in the short term from under 100,000 at present. Škoda has also added assembly of the new Octavia to two SKD assembly ventures in Eastern Europe, in Ukraine and Kazakhstan. Octavia, assembled by local partner companies, is the automaker's most popular model in both countries.

In Ukraine, the Octavia, Fabia, Yeti, Superb and Roomster are assembled from SKD kits by Europcar in Solomonovo. In 2012, Škoda's Ukrainian sales rose about 32% to 14,400 vehicles and market share to 6.6% from 4.9%. Meanwhile in Kazakhstan, Octavia, Fabia, Yeti and Superb are assembled from SKD kits by Azia Avto in Ust-Kamenogorsk, north-east Kazakhstan. Škoda’s Kazakhstan sales rose 158% last year to 1,900 vehicles.

INDIA Škoda has relaunched the Octavia in India, three years after it was discontinued. The latest model is positioned as much more of a premium model than the previous versions sold in India between 2001 and 2010, during which time sales of 45,000 units were achieved.

The new Octavia is being produced locally at the Aurangabad production plant in India’s Maharashtra region, alongside the Yeti, and Superb models. The Rapid is also sold in India, and it has been produced locally at Volkswagen’s plant in the city of Pune since the end of 2011. Škoda wants to improve aftersales service and widen its product line in India. The launch of a compact car model locally is also under consideration.

CHINA Škoda marked six years of China production in July, and has recently produced its 1 millionth car in China. Indeed, China is now the biggest global market for the brand, accounting for close to one quarter of global sales. Škoda cars are produced in partnership with Shanghai Volkswagen, the longest-standing foreign JV in the country.

And Škoda is planning to expand its production capacity and sales presence in China as part of its 2018 growth strategy. Board member for sales and marketing, Werner Eichhorn said: “Škoda is still in an early stage of its development in China. Our next plans are to introduce more new models, enhance brand recognition and expand the sales and service network. We expect to double production in China in the next few years.” That would take Škoda production in China to around 450,000 units.

The irst Škoda to be produced in China was an Octavia model, and with well over half a million units produced in China, the Octavia is the most popular Škoda model on the market. Greenline and RS models have been available since 2010, and currently production is being switched to the new Octavia, which goes on sale in China early in 2014.

Octavia is one of three models that have built Škoda’s Chinese market presence. In 2008 it was joined by the small Fabia hatchback, alongside an off-road version called the Fabia Scout. And in 2009, the largest Škoda, the Superb, went on sale. With its long wheelbase and exceptional rear legroom, the Superb is ideal for the Chinese market, where many buyers prefer to be chauffeured.

Indeed, the Superb is based on the long-wheelbase Volkswagen Passat platform, a model that is only made in China.

In 2011, Superb became the top seller in the Chinese upper-medium sector. China accounted for over 40% of the 116,800 Superbs sold worldwide that year, making it the biggest market for this model. The facelifted Superb went on sale in September 2013.

Also in 2013, Škoda introduced the new compact Rapid saloon and will introduce the Yeti SUV in early 2014. The dealer network is currently being increased from about 400 to more than 600 in the medium term.

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launch report Ford Tourneo Connect p46 BMW i3 p47 BMW 4 Series p48 Volvo FL p49

Move up the engine and specification levels, and the 4 Series becomes a seriously luxurious way to travel, whatever trim level you opt for. p48

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launch report

Ford Tourneo Connect Tourneo Connect comes to Europe and N. America – is it more than a van with seats, asks John Kendall?

SECTOR MPV PRICE €14,160 – €24,280 (approx) FUEL 4.6 – 8.0l/100km CO2 120 – 184g/km Ford’s array of MPVs is impressive – B-MAX, C-MAX, Grand C-MAX and Galaxy – suggesting that it has all the five and sevenseat possibilities covered. So you might ask why it is that the company is adding a further two models to the MPV range?

Ford’s explanation is that MPV buyers have different needs and desires and the Tourneo Connect, based on the justlaunched Transit Connect light van, offers a more practical model than the C-MAX or Grand C-MAX, which shares the same platform. The boxy van body offers a high degree of practicality with all second and third-row seats folding down to offer a flat loading floor. It is aimed at drivers, mostly older people, who rate practicality higher than design or the driving experience.

That might define retail buyers but fleets will be drawn to its practicality too. Tourneo Connect is likely to appeal to taxi fleet owners and possibly hotels where there is a need for a practical shuttle vehicle that can be driven easily by car drivers.

As we have said, the model is available with five or seven seats. Five-seat models are based on the L1 short wheelbase model and seven-seaters on the L2 LWB version. The rear overhang is the same length for both so the additional length is all added between

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the front and rear axles, benefiting legroom in the third row for the seven-seater.

Not surprisingly the engine range is also shared with the Transit Connect. The entrylevel, L1-only engine is Ford’s award-winning EcoBoost 100hp 1.0-litre three-cylinder turbocharged petrol engine, fitted with auto Stop/Start as standard. The 1.6-litre 95hp and 115hp diesels are available with both L1 and L2 models and are likely to be the most popular engines. The lower-powered diesel comes with a five-speed gearbox as standard and the 115hp version, like the 1.0-litre petrol engine, comes with a sixspeed manual transmission.

Then there is a 150hp 1.6-litre turbocharged petrol engine, only available with a six-speed automatic transmission. The car will be sold in Europe and North America and this engine/transmission arrangement is likely to be more popular in the latter.

The prize for refinement goes to the impressive 1.0-litre EcoBoost engine – which is sweet and smooth unless revved hard. Then it becomes a growl, but without being rough and unpleasant. Considering that the vehicle is neither small nor light, the 1.0-litre engine’s performance is impressive.

For drivers who do not seek performance, the 5.6l/100km combined fuel consumption

is a possibility if driven gently. For low consumption the choice is the 95hp 1.6-litre diesel with optional auto Stop/Start. This model will push combined fuel consumption down to 4.60l/100km and the engine has a good reputation for low consumption in everyday driving.

If the car is driven by those who are not interested in driving dynamics, they will miss out on one of the Tourneo Connect’s strengths. Ford has established a good reputation for chassis design and the car’s platform, shared with the C MAX range, is derived from the Focus. The Tourneo Connect drives like a good car, offers low noise levels for such a high volume body and plenty of comfort for driver and passengers. Controls and instruments are all shared with the Focus.

In design terms, it looks good against the van-derived VW Caddy, Fiat Doblo/Opel Vauxhall Combo, Citroën Berlingo and Peugeot Partner competitors. Some might think it even looks good beside a C-MAX.

verdict The new Tourneo Connect is a big step forward compared with its predecessor.

It’s practical, looks good and drives very well too.

BMW i3 BMW’s first electric vehicle is every bit the game-changer it promised to be, says Alex Grant.

SECTOR Lower medium PRICE €34,950 – €39,450 RANGE 130 – 300km CO2 0 – 13g/km With that badge on the bonnet, the BMW i3 was due an advantage from its inception.

BMW could easily have got away with converting a 1 Series to electric power, and it still would have sold. But, thankfully, it’s done exactly the opposite.

The i3 is the first of a new plug-in vehicle sub-brand, and not only has BMW made strides in the engineering of the car itself, but it’s taken six years studying the reasons why people might dismiss EV ownership and systematically addressed each one.

Top of the list is range. Pre-launch trials proved the i3’s 130-150km electric range is enough for most drivers, but there’s a rangeextended version for those who don’t believe it will be. Like the Opel Ampera, this uses an efficient petrol engine to power a generator, which stops the battery running flat and emits a barely audible hum at low speeds.

BMW expects this safety net to make the latter more popular at launch, but with sales swinging back towards the pure EV as drivers get used to the technology. The i3 is offered with membership to most public charging points, reaching 80% charge in three hours using a 32-Amp charger, or 20 minutes at a DC rapid charger if the car is equipped with the optional capability.

As rapid chargers appear along major

routes, infrequent long-distance travellers could find there’s no need to opt up to the range-extender, particularly as the i3 is also offered with short-term access to conventional BMW Group models as necessary.

The car itself is no less interesting.

Beneath its plastic body panels is a carbon fibre-reinforced polymer bodyshell, sat on an aluminium chassis with the battery under the cabin and drivetrain under the boot floor, providing 170hp to the rear wheels.

Manufacturing uses half the energy and 70% less water than a conventional model, and the materials used also allow it to be much lighter than its nearest rivals. A pure electric i3 weighs 30kg less than a MINI Cooper S, or 370kg less than a Nissan LEAF, while the range-extended model is 370kg lighter than the Opel Ampera.

In turn, this offers performance and agility beyond that implied by its egg-shaped back end and narrow tyres. Twist the columnmounted gear selector into Drive, and the i3 surges off the line with ferocity its already impressive on-paper figures don’t capture.

The combination of its rigid bodyshell, wide track and low overhangs also allow it to change direction with incredible precision, without resorting to overly stiff suspension.

Single-pedal driving is unusual, though.

Most EVs reverse the polarity on the motor under deceleration, regenerating energy and simulating soft engine braking. Lift off the throttle in an i3 and it sheds speed so quickly that you often don’t need to touch the brakes at all. Throttle and braking sensitivity can be blunted using the ECO PRO and ECO PRO+ braking modes, which also incrementally increase range by 15%.

Its size is also deceptive. The stubby bonnet gives it a supermini exterior footprint, but the interior is as spacious as a C-segment hatchback, though the shallow window line could make it a little claustrophobic, there’s plenty of room for adults.

With pricing close to a 1 Series and an ownership experience designed to be as unchallenging as possible, BMW should have no problems finding customers for the i3. This potentially had an easy task on its hands, but by taking the difficult route it’s become a compelling proposition that’s impossible to ignore.

verdict High tech, great to drive and backed by some of the sector’s most joined-up thinking, the i3 presents a great reason for taking a fresh look at electromobility.

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launch report

BMW 4 Series BMW’s revised numbering turns a two-door 3 into a 4. Dan Gilkes assesses the new coupe’s appeal.

SECTOR Premium coupe PRICE €35,000 – €53,500 (approx) FUEL 4.6 – 8.1l/100km CO2 121 – 169g/km BMW is putting clear air between its saloon, GT and estate 3 Series models and their more glamorous coupe and cabriolet siblings, by renaming the two-door cars as 4 Series. Visibly wider and with a longer wheelbase than its 3 Series predecessor, the 4 Series Coupe is a good-looking car, with an aggressively striking front end.

The flattened double kidney grille almost touches the headlights and the car has large air intakes in the lower apron, that pass air around the front brakes and out of the side through rakish air breathers, positioned behind the front wheels. Muscular rear arches and a wider track also contribute to the sporty look of the new Coupe.

There are three petrol engines and three diesel-burners available, though the 184hp 420d will probably remain the most popular with fleet buyers. Other diesel engines include two versions of BMW’s 3.0-litre six-cylinder engine, developing 258hp in the 430d and 313hp in the 435d.

Petrol options include two 2.0-litre engines, a 184hp 420i and the 245hp 428i, with the six-cylinder 435i boasting a 306hp 3.0-litre engine. Expect a twinturbo version of the six-cylinder engine

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in the forthcoming M4 model.

Six-speed manual and eight-speed automatic transmissions are available, with the auto standard on all six-cylinder models. BMW’s xDrive four-wheel drive system can be ordered on 420i, 420d and 435d models.

There are five trim levels available, from SE, through Sport, Modern, Luxury and M Sport. Higher trim levels build upon a generous SE specification which in the UK includes a BMW Professional radio, a 6.5” colour Control Display, Bluetooth connectivity and automatic air-conditioning with two-zone control.

All models come with Dakota leather trim, with dashboards featuring a range of surface treatments from traditional inlaid burr walnut in Luxury models to brushed aluminium and high gloss black and red in Sport models. A host of options are available to tailor the cabin to your preference, with a head-up display now available on the Coupe.

The longer wheelbase benefits rear seat passengers, with comfortable individual seating for two adults in the back. The rear bench also folds 40:20:40 to allow a variety of occupant and luggage combinations.

In the front the 4 Series delivers a

comfortable, sporting driving position with good visibility, even at the rear three-quarters. An electric arm hands the seatbelt to the driver as you close the door and the seats are adjustable for length, height, backrest and seat angle, with adjustable thigh support on all models above the base SE trim.

On the move the 4 Series excels, with lively handling and a real sense of what is going on beneath the tyres, even through the electric power steering. The 420d’s four-cylinder diesel engine provides plenty of power and, having tried 420d, 428i and 435i models, the diesel driver should not feel short-changed.

The base model performs well and makes an entertaining driving partner and a refined cruising companion. Move up the engine and specification levels, and the 4 Series becomes a seriously luxurious way to travel, whatever trim level you opt for.

verdict Some fleet managers might not allow drivers to opt for a two-door car, but for the lucky few the 4 Series offers a real bonus over its four-door stable mates.

Volvo FL Ian Norwell goes to Gothenburg to drive the light truck at the bottom of the Volvo weight range.

SECTOR Light truck GVW 12 –18 tonnes ENGINES 5.1 and 7.7 litres POWER RANGE 210 – 280hp The lengths that CEOs will go to in order to shine a light on new vehicles is on the up and it’s those supposedly sober Swedes who are raising the bar. It was no less than Claes Nilsson, president of Volvo Trucks, applauded as he was hoisted aloft over Gothenburg harbour, standing on the front bumper of a vertical Volvo FMX eight-wheel tipper – and all to demonstrate his confidence in the strength of the product. The movie clip, ‘The Hook’, is on its way to over two million YouTube hits.

RANGE In normal times, the renewal of the entire Volvo truck range would be a remarkable affair, but as most other major truck makers have done the same thing – ahead of the Euro 6 deadline – it’s become commonplace.

The Volvo range may top out with the thundering 750hp FH long-hauler, but there are smaller models that will be quietly working away on our high streets. Volvo’s FL light truck, in the 12-18 tonne bracket, is the staple of urban distribution. Any innovations will affect many light transport operators and thousands of drivers.

The FL now packs Volvo’s 5.1-litre, four-cylinder D5 diesel at Euro 6, and offers power and torque outputs of 240hp/900Nm or 210hp/800Nm. The

new FL comes with the improved, optional ‘Gold Service’ contract maintenance package, which uses remote diagnosis, connecting the truck to the workshop.

The system can follow vehicle usage and monitor the wear and tear of components.

The aim is to ensure that the truck is serviced only and exactly when needed – and that maintenance is carried out when the vehicle is not in use.

“By remotely keeping an eye on how the truck is used and the wear rates of the various components, we aim to prevent small issues from growing into unexpected standstills,” explains Jarkko Aine, transport solutions expert at Volvo Trucks.

LIGHTWEIGHT As for the truck itself, it attains Euro 6 with a combination of SCR (selective catalytic reduction) using AdBlue liquid additive, a DPF (diesel particulate filter) and cooled EGR (exhaust gas recirculation). A manual six-speed gearbox is standard, with the I-Synch six-speed AMT – baby brother to I-Shift – as an option, and it now offers a lightweight 12-tonne version. This claims the most powerful engine in its segment and, on Volvo’s weighbridge at least, its chassis is 500kg lighter than a correspon-

ding truck with a six-cylinder engine.

“The new 12-tonner is a sharp contender in the largest medium-duty segment. The truck is lighter, lower and more competitively priced than the current model. It increases customer productivity and efficiency at the same time as it offers the driver better working conditions,” says Tobias Bergman, product manager distribution and refuse segment, Volvo Trucks.

THE DRIVE At one of Volvo’s many test tracks a course was laid out to replicate the urban distribution scenario the FL will meet. It included ‘truck town’, an assortment of 20’ and 40’ containers laid out in street style. Artificial maybe, but it did enough to show how easy the truck is to manoeuvre in town. A quiet cab, an automated gearbox, simple engine brake, and (with 17.5” wheels) our FL512 had the lowest entry step to a light distribution cab we’ve seen. All good news for the driver.

verdict A light chassis, telematics-linked contract maintenance to maximise uptime, good manoeuvrability and a quiet cab look like a recipe for success.

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fleet in figures

China holds decisive lead Car sales in China lead the US by over four million, while Europe shows more signs of cautious recovery. John Kendall reports.

Hyundai remains strong in India where the company has a production plant

Recent data from the European car market suggests that the economy is making a gradual improvement as more countries see registrations start to rise.

Commercial vehicles may give a better impression of the state of the economy, providing an indication of demand for the movement of goods. The picture is similar in some ways to the car market. 160,038 new commercial vehicles were registered in the EU in September, an increase of 6.1% compared with September 2012.

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Italy was alone among the major European markets in registering a -3.5% decrease for the month compared with September 2012, to an estimated 9,139.

At the end of the third quarter, year to date (YtD) registrations for the EU had decreased -4.0% to 1,230,188, compared with the same period in 2012.

Looking at the annual trend, the steep percentage decreases in the market seen in 2012 have not been repeated in 2013 and the percentage rate of decline

in Q3 has been steadily decreasing.

Heavy CV registrations were expected to lift in the second half of the year, because of the introduction of Euro 6 emissions legislation in January 2014.

The effect will be an increase in new CV prices and buyers were expected to rush to buy Euro 5 compliant models before the Euro 6 deadline comes into effect.

This will affect all CVs over 3.5-tonnes gross weight. ACEA data for these vehicles shows that for September 26,058 vehicles

were registered – a 7.6% increase over September 2012 – following a 4.9% rise in August registrations. These were the first monthly increases since January 2012, so it appears that Euro 6 has been having an effect.

The overall trend is still downwards with YtD registrations for this sector to September down -6.8% compared with the same period in 2012. Until economic stability returns to the region, the negative trend is unlikely to end. ACEA data shows that the expected pattern appears to be happening, in that monthly registrations have started to rise and the trend could continue for the rest of 2013.

Looking at the data for September shows that some countries posted large percentage increases, such as Romania, where registrations for CVs over 3.5-tonne rose 133.5% to 411 compared with September 2012. At the same time, markets such as Italy and Belgium posted large percentage decreases (-27.4% and -22% respectively), suggesting that demand is still too weak for truck buyers to consider taking advantage of Euro 5 pricing.

Optimism must therefore remain cautious. The other side of the Euro 5/ Euro 6 registrations discussion is that demand is expected to fall steeply in 2014, once the supply of Euro 5 vehicles dries up. Without sustained economic growth in the EU in 2014, truck sales are likely to remain depressed.

Light CV registrations below 3,500kg GVW have also shown signs of optimism.

For September, registrations increased by 5.6% to 130,789, the third time that monthly registrations have risen in 2013.

Overall the market for January to September is down -3.4% to 1,004,479 compared with 2012. That decrease is smaller than for the overall CV market, but some countries are still recording large decreases. Italian registrations are down -16.3%. France has been the largest market for light CVs in the EU even though YtD registrations were down -6.9% to 265,029. The second largest market – the UK – has, on the other hand, seen 9.6% growth in the same period to 205,004.

GLOBAL Data from LMC Automotive suggests that global light vehicle sales for the January to October period are up 3.2% to 69,596,024 compared with the same period in 2012. Not surprisingly, it is China that is still leading the growth.

According to LMC; “Inventory at dealerships reportedly dropped to 1.19 months at the end of September, the lowest level since February 2013, which will boost deliveries to dealerships.”

The Chinese market is up 13.1% YtD to 17,700,497 sales, making it the largest light vehicle market in the world and leading the second largest, the US, by almost 5m sales at 12,972,221, up 8.3% on the same period in 2012. Western Europe remains the third largest market despite the -3.3% decline to 10,849,466.

LMC Automotive commented; “Given the economic and political fragility in the region, it would be optimistic to expect a sustained period of increasing sales in the near future, though we do expect sales to start to steadily improve from 2014. With a real turning point in prospect, this is clearly a market to watch closely.”

Japan is also declining with sales down -3.6% to 4,391,670. According to LMC Automotive though, the market is expected to thrive in the coming months; “In Japan, consumers have started to rush to buy cars as the government has formally announced that it will raise the consumption tax from the current 5% to 8% in April 2014.

The selling rate surged to a five-month high of 5.3m units/year in October and is expected to continue to rise before the tax hike.”

Eastern Europe, including Turkey is down 2.3% to 3,992,515, with poorer prospects for Russia according to LMC Automotive; “Sales in Russia disapEuropean light pointed, after a couple

of months of apparent stability. The selling rate fell to 2.74m units/year after a more encouraging result in September. The current loan incentive scheme may not be having the desired positive effect: negative risks for 2014 are growing.”

INDIA High inflation is helping to dampen demand for vehicles in India in 2013.

According to the Hindustan Times, the wholesale rate of inflation stood at 7% in October. Fuel and vegetable prices have risen sharply. The Reserve Bank of India has raised its key lending rate for the second month in a row. The rate now stands at 7.75%. Not surprisingly then, the car market is down -8% for the January to September period compared with 2012, to 1,783,611 and light CVs are down -23% to 420,513. Maruti-Suzuki remains the top-selling manufacturer with sales up 4% YtD to 722,899, with Hyundai, Mahindra, Toyota and Tata making up the top five.

“Preliminary data for October shows retail sales during the festival season have been weaker than the previous year,” said Ammar Master, senior market analyst for India at LMC Automotive.

“We expect OEMs to further trim production through extended holidays and reduced shifts to pare build with market demand. Our forecast for the rest of this year and the first half of 2014 is conservative because of the adverse market conditions,” he added.

CV sales are slowly improving

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